The Federal reserve’s experiments with the digital dollar

The US Federal reserve (FRS) is currently experimenting with the digital dollar. The goal will be to understand how this works and what consequences it can have.

The FED is working on a digital dollar. According to a report published by Bloomberg, the results of this collaboration on the digital dollar will be published and made available as open source software to increase the number of experiments.

Governor Lael Brainard explained that the Federal reserve Bank of Boston and the Massachusetts Institute of technology intend to implement this multi-year effort to test the virtual asset they want to manage.

Although there are other prototypes of Central Bank digital currencies (CBDC) around the world, the goal is to create a mechanism and software that will meet the requirements and needs of the US economy. The United States is a country that processes many transactions and needs improved security and privacy.