The US Federal Reserve is testing over 30 blockchains for the "digital dollar"

The Federal Reserve Bank of Boston, one of 12 Federal Reserve Banks, is considering more than 30various blockchain networks to experiment with the “digital dollar.” This was reported by Coindesk.

This month, it became known that the bank is actively testing a digital dollar - a tokenized version of the US dollar - together with the MIT Digital Currency Initiative (DCI).

Jim Cunya, senior vice president of a Boston bank, said the research is aimed at finding out what benefits the digital dollar can bring to the current financial system.

"We want to know how a distributed ledger can be used to market the digital currency of the US central bank.", - he said.

In the course of the work, the researchers hope to answer questions about the scalability, privacy and resiliency of the digital currency, he said.

"I think we will first take a rough look at 30 to 40 different open source solutions and then go deeper into some of them."- said Kunya.

“We are very pleased with this cooperation. DCI's goal is to answer the fundamental questions that are needed to determine under what circumstances CBDC might be a good idea and how we can implement it if the central bank decides to use digital currency. "DCI Director Neha Narula said.

At the moment, the study is focused only on the technical aspects of CBDC implementation.

Bob Bench, Assistant Vice President, Bank of Boston,in a comment to Coindesk said the US and other countries may have different views on privacy and other aspects of CBDC. According to him, to date, even the most basic issues have not been resolved (for example, which programming languages ​​to use when developing CBDC).

According to Cunya, the researchers plan to publish the joint work within the next two years.

"We hope to create an open source code base that will be useful to anyone interested in building, testing and deploying a central bank digital currency."Narula said.

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