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    New York Fed And 12 Banking Giants Launch Digital Dollar Test After FTX Lost BILLIONS

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    The Centralized Bank of New York, the nation’s financial hub, is pushing for the adoption of digital dollars as a consoling measure for those who could have lost their money in cryptocurrencies.

    To enhance how central bank cash is settled among institutions, a number of large banks including the Federal Reserve Bank of New York have started testing the usage of digital tokens that represent digital dollars.

    Along with payments juggernaut Mastercard (MA), participating institutions include Citigroup (C), HSBC (HSBC), BNY Mellon (BK), and Wells Fargo (WFC). This information was released by the New York Fed on Tuesday.

    According to a Coin Desk report published on Wednesday, “The 12-week proof-of-concept pilot program will explore the use of a platform known as the regulated liability network, or RLN, whereby banks issue tokens that represent customers’ deposits that are settled on a central bank reserve on a shared distributed ledger.”

    Bloomberg stated that “Wall Street Tests Crypto Dollars With Fed, Defying FTX Gloom.”

    The Bahamas is home to the cryptocurrency exchange FTX. The exchange was established in 2019, and at its height in 2021, it had more than a million users and ranked third in terms of volume. Following a liquidity difficulty, FTX has been involved in bankruptcy procedures in the US court system as of November 11, 2022.

    Concerning the FTX Disaster, Fox News said:

    Comparisons to some of the most infamous financial scandals in recent decades have been made in response to the collapse of cryptocurrency exchange FTX amid claims that at least $1 billion in client money vanished, potentially having an impact on around a million customers. However, the number of customers affected is significantly greater.

    For Zero Hedge, Tyler Durden provided the following report:

    A crisis should never be wasted. Or even a financial collapse.

    The implementation of CBSC is the next step in the pipeline of the “organized crash,” and the Fed and a number of banks have been secretly preparing for it while the equity and bond markets remain trapped in severe bear markets and serve as a sufficient distraction from what is occurring behind the scenes.

    Global banking behemoths have joined forces with the Federal Reserve Bank of New York to launch a 12-week digital dollar pilot, according to a statement from the New York Fed.

    Along with the New York Fed, financial institutions like Citigroup, HSBC Holdings, Mastercard, and Wells Fargo are taking part in the experiment, which will “public contribution to the body of knowledge on the application of new technology to the regulated financial system.”

    More on this story via The Republic Brief:

    Bank of New York Mellon, the money-laundering bank of the world, HSBC Holdings, PNC Financial Services, Toronto-Dominion Bank, Truist Financial and U.S. Bancorp are also participating in the test, along with payments network Mastercard.

    The project, which is called the “regulated liability network”, will allow banks to simulate issuing digital money representing their customers’ own funds before settling through central bank reserves on a distributed ledger, the New York Fed said.

    The pilot will test how banks using digital dollar tokens in a common database can help speed up payments. CONTINUE READING…

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