Reported by: Gwinny Kongphet

The Regulated Liability Network, a proof-of-concept digital currency network, was launched on Tuesday according to a collection of banking organizations that includes HBSC, Mastercard, and Wells Fargo (RLN).

The New York Innovation Center (NYIC), a division of the Federal Reserve Bank of New York, is thrilled to be collaborating with the members of the American banking and payments community on this [proof-of-concept] project, the group stated in a statement.

According to the consortium, the platform would make use of chances to enhance financial settlements by using distributed ledger technology, sometimes known as a blockchain. Central banks, commercial banks, and “regulated non-banks,” such as BNY Mellon, Citi, PNC Bank, Swift, TD Bank, Truist, and U.S. Bank, would all take part.

Banking officials have long been interested in CBDCs, or central bank digital currencies. Similar to stablecoins, CBDCs are digital representations of a state’s fiat currency that are paired 1:1 with a particular fiat currency.

The RLN, according to the group, will exclusively accept U.S. dollars and run for twelve weeks. On a common blockchain, participants will issue fictitious digital tokens that represent consumer deposits and settle with fictitious central bank reserves.

According to the organization, the initiative would have a regulatory framework that is in line with current laws requiring know your customer (KYC) and anti-money laundering measures.

Read full report: https://insidebitcoins.com/news/u-s-banks-launch-a-blockchain-test-for-the-digital-dollar