According to Finextra, the Digital Dollar Project has partnered with Western Union, BDO Unibank Philippines and Accenture to complete a pilot study on digital currency opportunities.
The pilot study explores how CBDC can be used for cross-border remittances using distributed ledger technology (DLT) to create infrastructure to convert digital dollars into Philippine pesos.
Kevin Mole, Western Union's global head of digital assets, said that through this pilot study, Western Union has identified a number of advantages for customers and financial institutions, laying the foundation for continued evaluation of the feasibility of using retail CBDCs for cross-border remittances.
The study found that CBDCs could benefit the unbanked and underbanked through faster and easier access and transfers, and reduce the number of failed transactions. CBDCs could trade at lower costs, reduce risks through instant settlement, and ensure transfer visibility, thereby gaining more trust from users.