The project would explore various aspects of ‘digital money’ issued by the central bank.
The New York Innovation Center(NYIC), a part of the Federal Reserve Bank of New York, announced its collaboration with a consortium of private banks on a Proof of Concept (PoC) project which would explore the viability of digital money issued by the central bank using distributed ledger technology.
The notion of a Regulated Liability Network (RLN) has been used in this 12- week project. The release specifically mentioned three parameters to test the technology- feasibility on the technical front, the viability of the legal angle, and the applicability of the technology to be used by businesses.
“The NYIC looks forward to collaborating with members of the banking community to advance research on asset tokenization and the future of financial market infrastructures in the U.S. as money and banking evolve,” said Per von Zelowitz, Director of the New York Innovation Center.
Further, in a press release, the banking consortium of major private banks noted its happiness to work alongside the innovation center. It also mentioned various other aspects of the project, including scope, tokens, industry collaboration, etc. Both the center and the group of banks clarified the test environment of this project and expressed their inability to commit to any future plans concerning the project.