A US-based think tank has reportedly introduced a “technical sandbox” looking to fast-tracking the exploration of a potential United States central bank digital currency (CBDC).

Specifically, via an August 31st Twitter post from Digital Dollar Project (DDP), the organization reportedly claimed that the new program look to deep-dive into “technical and business implementation” inquiries associated with a U.S. CBDC.

The organization noted that the initial participants of the sandbox include crypto entity Ripple, financial technology establishment Digital Asset, software platform Knox Networks and banking solutions firm EMTECH.

The Technical Sandbox Program has a primary target of offering the federal authority, policymakers and the private sector a tighter grasp of the knowledge regarding the way a potential CBDC would be introduced.

This includes the potential implications to retail and wholesale and international use cases like cross-border payments.

The U.S Federal Reserve has reportedly not been able to finalize a decision regarding whether or not it will implement a CBDC, but has been studying the potential risks and benefits that come with them, with a discussion paper rolled out on January 20th running examinations of the perks and setbacks of CBDCs, but failed to offer any hints about its future plans.

Recommendations from the paper reportedly stated that CBDCs could function as digital money unbound by credit and liquidity risks, enhance cross-border payments, assist in preserving the dominance of the U.S dollar, promote financial inclusion and extend public access to safe central bank money.

Potential associated risks reportedly included an amended U.S financial network, extra severe bank runs for other forms of money, bringing down the power of monetary policy, operational resilience and a difficult balance between transparency and safeguarding consumer privacy rights.