US' Federal Reserve working on two CBDC prototypes

The Federal Reserve Bank of Boston and the Massachusetts Institute of Technology (MIT) plan to unveil two prototypes of a digital dollar as early as July 2021.

The two entities hope to unveil some of their work in the third quarter of 2021, including at least two prototype software platforms that could move, store, and settle transactions made with digital USD. Once the prototypes are released, others will be able to see and build on the code.

There are major issues that the central bank, the Treasury, and Congress must address regarding the digital USD. These include whether the Fed should host customer accounts itself, whether to allow anonymity, and what protections consumers would have in case of a cyberattack or erroneous transaction.

Representants of the Federal Reserve said the central bank would fully adopt a digital dollar only with the support of the nation’s elected leaders.