Millicent has broken new ground by becoming the first organization in the world to conduct a test of a digital currency with a full reserve.
On Thursday, July 14, the distributed ledger fintech company Millicent made the announcement that it had successfully completed the world’s first experiment of a Full-Reserve Digital Currency (FRDC) directed at the retailing industry. This test was co-funded by the Research and Development department of the United Kingdom government.
According to the news statement that was distributed to Coinjournal, Millicent’s FRDC was developed with the safety and confidence of consumers in mind.
As such, they are privately issued digital currencies that are pegged to a traditional fiat currency. Additionally, they are 100 percent collateralized by liquid ‘cash’ deposits that are held in a ringfenced account that is protected by a regulated third party directly at the central bank.
Millicent detailed that the test had been conceived of as a technological demonstration for Innovate UK, a division of the United Kingdom’s Research and Innovation organization.
A Precursor to the CBDT
The company also stated that the successful demonstration is an essential milestone toward the construction of a financial infrastructure that blends the advantages of distributed ledgers and smart contracts with the benefits of legacy economic infrastructure.
The following were some of the comments made by the Innovate UK reviewers:
“[Millicent] tackles the most significant challenges facing the payments business today, both in its traditional and cryptocurrency forms. It is both brave and ambitious of this initiative to deliver a digital wallet and payment application that can be accessed via iOS and Android apps, along with an application programming interface (API) for integration with existing online and mobile platforms.
In the wake of the demise of the UST stablecoin in recent months, stablecoins have become the subject of increased investigation. Many people are to blame for the crisis, which was partly caused by dangerous designs and a lack of transparency, both of which have hindered the widespread adoption of digital currencies.
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Millicent elaborated by saying that the general public is still suspicious of central bank digital currency (CBDCs) despite the fact that there are worries over the possibility of overreach and the deterioration of privacy.
Because of this, the FRDC was developed to address these concerns at a time when the United Kingdom is making significant efforts to adopt regulated digital payment systems. Since FRDC is given privately, it eliminates the need for intermediaries between the public sector and the end consumers.
Stella Dyer, the Chief Executive Officer of Millicent, stated that
“During such a tumultuous period for the cryptocurrency markets, we are tremendously happy to have submitted this world-first solution to Innovate UK.
Recent issues experienced by large cryptocurrency platforms underscore the significance of projects such as Millicent, which are focused on providing safety, stability, and benefits that are applicable in the real world.
Millicent is a corporation that is primarily concerned with laying the logistical and financial groundwork for the foreseeable future. The advantages of distributed ledgers and smart contracts are combined with the advantages of the existing economic infrastructure of the company.
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