New York Fed Launches Digital Dollar PoC Project – It’s Time to Get Interested in Buying BTC in No-KYC Mode.

It's time to take responsibility for the safety of the fruits of your labor.

Nov 17

Global Banks Partner With New York Fed for 12-Week Digital Dollar Pilot

Just a few days after the FTX bankruptcy and the fall of Sam Bankman-Fried, an announcement has just been made by the New York Fed. This announcement mentions an official project of a “digital currency platform” linked to the US dollar.

For many, this is not a coincidence, but rather a communication stunt orchestrated to the millimeter. This announcement comes at a time when the cryptocurrency world is experiencing one of the worst internal crises it has ever known.

The code name of this project is “Regulated liability network” (RLN).

A project led by members of the banking community (HSBC, Wells Fargo) and payments (MasterCard) based in the United States. The goal is to conduct a proof-of-concept campaign in conjunction with the New York Innovation Center (NYIC), an integral part of the Federal Reserve Bank of New York.

This is part of the broader framework of the implementation of a CBDC-type central bank digital dollar. A project that is struggling to see the light of day, if we compare it to its already functional Chinese version. The goal is to develop a Blockchain that is supposed to allow “creating opportunities for innovation to improve financial regulations.”

All with the participation of central banks, commercial banks of various sizes, and regulated non-banks.

Here is an excerpt from the press release:

“The 12-week PoC will test a version of the RLN design that operates exclusively in U.S. dollars where commercial banks issue simulated digital money or 'tokens' - representing the deposits of their own customers - and settle through simulated central bank reserves on a shared multi-entity distributed ledger. The PoC will also test the feasibility of a programmable digital money design that is potentially extensible to other digital assets, as well as the viability of the proposed system within existing laws and regulations.”

A project that seems to include big names in traditional finance such as BNY Mellon, Citi, PNC Bank, the Swift network, TD Bank, Truist, and US Bank. As a sine qua non, the implementation of a KYC registration system and a reinforced requirement to fight against money laundering. But eventually, the possibility mentioned of being able to integrate other digital assets like “regulated stablecoins.”

However, this proof of concept remains a simple simulation carried out by the New York Fed.

For the press release is quick to point out that this experiment “is not intended to advance any specific policy outcome, nor to signal that the Federal Reserve will make any imminent decisions about whether to issue a retail or wholesale CBDC nor how a CBDC would necessarily be designed.”

So much for saying that the digital dollar is not yet around the corner, but that the Fed is experimenting to be ready if and when it does.

As an individual, what should you think of this announcement from the New York Fed? Well, I think it's time to get interested in buying BTC in no-KYC mode because that's how you'll be able to secure the fruits of your labor while protecting your privacy.

Doubt it? Wait until you see the names of all FTX customers and their cryptocurrency holdings revealed to the world in the bankruptcy proceedings initiated by Sam Bankman-Fried. Then you'll understand why buying Bitcoin in no-KYC mode is essential for your future.