EMTECH, a modern central bank digital infrastructure provider, has recently announced in a press release that the startup will participate in the upcoming Technical Sandbox Program – a new initiative from The Digital Dollar Project, a nonprofit organization dedicated to the exploration of a central bank digital currency (CBDC) in the U.S.
A Digital Dollar?
The Technical Sandbox Program is set to launch in October with strategic assistance of four technical vendors including EMTECH, Knox Networks, Ripple, and Digital Asset. EMTECH’s technical specifics will support the exploration of cross-border payments capabilities, in bringing API-First, Energy Efficient and DLT-Based Central Bank Digital Currency (CBDC) Platform.
Cross-border operations are the program’s primary focus. Emtech Chief Technology Officer Tabor Wells said in a statement that, “The current ecosystem for cross-border payments is a complex nightmare for Financial Service Providers to navigate. EMTECH’s CBDC Platform, with its API-First approach and high-performance DLT, is a more modern design that we’re excited to bring to the Technical Sandbox Program.”
Apart from cross-border payments, the program will further research and analyze technical implementations of a CBDC, a wide range of design options, the potential benefits and risks, uses, and functions of a CBDC.
New Money is Here
In addition to EMTECH, other participants like Knox Networks, Ripple, and Digital Asset have joined forces to advance the study on retail, wholesale and international implications for CBDCs.
The Dollar Digital Project expects different members will promote diversity to attain ultimate solutions and drive the most optimal outcome.
The solution-finding process will most likely be divided into two phases. The first phase will be for participants to come up with innovative ways of doing things in the CBDC area.
The second phase of testing will examine real-world applications of the “state cryptocurrency” and how they affect business operations.
As the cryptocurrency industry develops and matures, new trends and innovations are competing for launch. But the unregulated sector is vulnerable to cybercrimes.
In efforts to end these loopholes that make it useful to scammers and tax cheats, the US previously introduced an executive order on crypto.
In March 2022, President Joe Biden signed an Executive Order EO 14067 that deals with safeguarding digital assets.
Executive Order 14067, “Ensuring Responsible Development of Digital Assets,” which is set to go into effect on December 13th, directs federal agencies to conduct a broad assessment of current digital asset policies and to report information endorsing regulatory and legislative policy changes.
The potential introduction of a digital dollar is another major highlight of the EO 14067. Unlike traditional cryptocurrencies, these Central Bank assets will be backed by the country’s cash reserves. As a result, they are more stable.
However, the decision sparked heated debate. According to some supporters, the new order aims to protect consumers and financial institutions as digital currencies and assets such as NFTs are created and spread throughout the financial services industry.
We Aren’t Dead Yet
Dissidents, on the other hand, consider the order as a crush on privacy…
Robert Kiyosaki, well-known author and American businessman, and James Rickards, discussed the order in a podcast, calling the order “spyware.”
The Rich Dad, Poor Dad author argued that per executive order 14067, the US dollar will be made obsolete and replaced with a programmable digital token.
The new monetary system will allow for total control of all American citizens, which is, in monetary interpretation, having spyware installed in your bank account.
Rickards supported the statement, sounding alarms on the EO that he considered would monitor every single transaction and take down certain purchases.
Presumptions about legal surveillance, total control of money, and purchases associated with the establishment of a new potential US currency have risen.
Given the programs’ goals, which are to address remaining challenges in the payment system, it is too early to conclude whether it could lead to sinister outcomes as speculated.
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Author: Nicholas Say