FBI tests central bank cryptocurrencies for international payments

The Federal Reserve Bank of New York, together with the Bank for International Settlements (BIS) Innovation Center, is testing government stablecoins to simplify foreign currency transactions. The study was conducted as part of the Cedar project, organized by the BIS to test wholesale CBDCs in international transactions using blockchain technologies.

Per von Zelowitz, Director of the New York Innovation Center, emphasized: «Thanks to blockchain, payments using foreign currencies can be made within 10 seconds. In addition to accelerated transactions, the blockchain makes it possible to conduct them around the clock.»

The first stage of the Cedar project revealed that blockchain can significantly modernize the payment infrastructure, so the participants of the experiment will continue strategic research and development. Zelowitz noted that at this stage, issues related to user privacy, scalability, and the ability to program digital currencies were not considered. However, these aspects will be given special attention in the next phases of testing.

In early October, the Federal Reserve, the White House, and the U.S. Treasury Department formed a working group that will be responsible for the development, research, and implementation of CBDC. This was not least provoked by China’s plans. However, experts suggest that in the future, bitcoin, which is familiar to everyone, may become a substitute for CBDC for Americans.