Ripple is one of the four participants to help the Digital Dollar Project (DDP) explore technical and business implementation questions. The DDP recently launched the technical Sandbox Program to jumpstart further exploration of technical implementations of the central bank digital currency (CBDC). The sandbox program, with a focus on cross-border payments, will start in October.
The four organizations participating are Ripple, Digital Asset, EMTECH, and Knox Networks. They will scrutinize real-world technology and establish the likely implications for business strategies and operations. The organizations will conduct test runs to determine the possible use cases. Jennifer Lassiter, the executive director with DDP, said the launch of their Technical Sandbox Program marks the next step to convene the private and public sectors in the exploration of a CBDC in the United States. They understand the importance to include a diverse set of views and expertise to answer the key questions about how the technology could work, the problems to solve, and the business and individual outcomes they want to achieve.
Lassiter said the organization’s partnership with the private sector shows the importance of collaboration and helps lay the foundation for robust pilots that improve the outcomes and usability of CBDCs. There would be two phases – the education phase and the pilot phase, with the initial stage, focused on helping DDP partners and participants develop a business and functional understanding of the technology. An evaluation of the differences in possible design choices will also be carried out.
The DDP will conduct tests to identify and test specific CBDC use-case hypotheses. The results will be used by the public and private sectors on how advancing technical solutions can unlock business value in a transformative way.