The Federal Reserve of New York announced a pilot program along with major global financial groups to move forward into creating a digital dollar. The program, Regulated Liability Network, or RLN, will be a 12-week experiment where the Fed reviews the bank’s ability to process digital dollar tokens within the central banking system. Digital money will be simulated to represent the deposits of the banks’ customers and settle them through the reserves on a shared distributed ledger. The launch of the pilot program comes within days of the FTX scandal, which some believe will be used to play a role in moving forward with regulating cryptocurrency. In September 2002 the White House released a statement titled, “Technical Possibilities for a U.S. Central Bank Digital Currency”, where it furthered the discussion on the U.S. entering this new age of digital currency but seemed to remain undecided and skeptical. However, in May 2022, Biden signed an executive order requiring the government to assess the risks and benefits of creating a central bank digital dollar, as well as other cryptocurrency possibilities. Treasury Secretary Janet Yellen said that the U.S. “advance policy and technical work on a potential central bank digital currency, or CBDC, so that the United States is prepared if CBDC is determined to be in the national interest.” Other countries have already begun their own CBDC initiative. China has started large-scale trials of the e-CNY also known as the digital yuan. European officials have an expressed desire to launch a digital euro by 2025. Is this just another step to a global economic system? https://www.newyorkfed.org/aboutthefed/nyic/facilitating-wholesale-digital-asset-settlement

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