New York Federal Reserve Partners with Major Banks to Start Digital Dollar Pilot

The New York Federal Reserve and a group of major banks are collaborating to start a 12-week digital dollar pilot. The project will use "regulated liability network" as a ground for participants to experiment with wholesale digital asset transaction and settlements.

Partners on the digital dollar pilot include BNY Mellon, Citigroup, HSB Holdings, Mastercard, PNC Bank, TD Bank, Truist, U.S. Bank and Wells Fargo & Co. The New York Federal Reserve said that the project will only use simulated data.

"This theoretical financial market infrastructure provides a multi-asset, always-on, programmable infrastructure containing digital representations of central bank, commercial bank, and regulated non-bank issuer liabilities, denominated in U.S. dollars," the New York Federal Reserve said in a statement.