This comes after the U.S. Treasury Department recommended issuing a digital dollar in September
Citigroup, Wells Fargo, and other financial institutions are kicking off a new digital dollar pilot with the Federal Reserve Bank of New York, Reuters reports.
Called the regulated liability network, the project will be conducted with the help of simulated data.
The purpose of the pilot, which will last for a total of 12 weeks, is to determine how digital dollar tokens could increase the speed of payments.
In mid-September, the U.S. Treasury Department recommended exploring the creation of a digital dollar.
The Biden administration is convinced that the digital dollar would help the U.S. to remain a leader in the global financial system.