New York Fed Completes Wholesale Central Bank Digital Currency Simulation Test, Average Transaction Settlement Time Less Than 15 Seconds

The New York Fed's New York Innovation Center has announced the Phase One progress of its pilot program Project Cedar, which aims to improve cross-border payments using blockchain technology. In Phase One, a prototype of wholesale central bank digital currency (wCBDC) was developed to simulate wholesale foreign exchange spot transactions to test if blockchain technology can provide fast and secure payment services. The simulated tests indicate that blockchain-supported cross-border payments are faster, more synchronous, and more secure. In the testing environment, the average settlement time for transactions on the distributed ledger system supported by blockchain is less than 15 seconds.

The New York Fed's New York Innovation Center announced the progress of Phase One of its pilot program Project Cedar, which aims to improve cross-border payments using blockchain technology. Phase One developed a prototype of a wholesale central bank digital currency (wCBDC) to simulate wholesale foreign exchange spot trading to test whether blockchain technology can provide fast and secure payment services. The simulated tests indicated that blockchain-supported cross-border payments are faster, more synchronized, and more secure. In the testing environment, the average settlement time for transactions on the distributed ledger system supporting blockchain was less than 15 seconds.

As part of its ongoing research on wCBDC, the New York Fed will explore issues related to interoperability and ledger design, including how to achieve concurrency and execute atomic transactions best in different blockchain-based payment systems. The core concept of the Project Cedar solution is a distributed ledger infrastructure, a multi-ledger structure where each currency is held on a separate ledger operated by its respective simulated central bank. The Phase One prototype included design choices such as a permissioned blockchain network, utilizing Unspent Transaction Output (UTXO) data model, and Rust as the primary programming language.

This article is authorized reprint from Foresight News, Foresight News is a Chinese content platform in the Web3 vertical field, committed to creating a Chinese gateway to the Web3 world with the basic principles of "objectivity and neutrality."

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