LONDON, UK / ACCESSWIRE / July 14, 2022 / millicenta distributed ledger fintech company co-funded by the UK government’s R&D department, has announced that it has successfully completed the world’s first test of a full-reserve digital currency (FRDC) for the retail market.
Designed for consumer security and trust, Millicent FRDCs are consumer-issued digital currencies pegged to traditional fiat currency and 100% backed by liquid “cash” deposits in a ring-fenced account protected by a regulated third party, directly to the central bank.
The test was designed as a technology demonstration for Innovate UK, a subsidiary of Research and innovation in the UK, the national funding agency investing in advanced science and technology research that co-funded Millicent’s project. Performed in a sandboxed environment, the demo simulated the ramp-up of fiat via Faster Payments from one of the UK’s largest consumer banks, as well as the conversion and on-chain minting of pegged FRDC tokens on the British Pound, and a variety of payment methods and settlement scenarios.
The success of the demonstration is a key step in Millicent’s mission to build a financial infrastructure that combines the benefits of distributed ledgers and smart contracts with legacy economic infrastructure. Millicent strongly believes in the potential of blockchain to create a more accessible and fair financial system for everyone.
“[Millicent] fixes major shortcomings in the payments industry, both traditional and crypto. said the evaluators from Innovate UK, adding: “To provide a digital wallet and payment app accessible via iOS/Android apps, with an API for integration with existing web/mobile platforms as part of this project is brave and ambitious.
Millicent’s first-ever test of a retail FRDC demonstrated various use cases, including micropayments such as £0.15 to access a paid newspaper article, using a QR code to give a tipping a busker £1, plus peer-to’s of higher value. -peer payments. This test highlighted the low fees and near-instant settlement of Millicent’s FRDC network, as well as its flexibility, with demonstrations of payments via mobile app, custodial wallet and non-custodial wallet.
Although Millicent’s test can be considered to satisfy the definition For the world’s first retail test of a synthetic central bank digital currency (sCBDC), the company prefers the term full-reserve digital currency to differentiate its offering from central bank-issued digital currencies, as well as d ‘other types of ‘stablecoins’ that have been proven to be anything but stable, despite the nomenclature convincing the public otherwise.
Stablecoins have in recent months come under intense scrutiny due to their sometimes risky designs and a lack of transparency, leading to slow adoption by the general public and significant losses for traders. consumers. At the same time, some members of the public remain wary of CBDCs due to concerns about potential overreach and the erosion of privacy.
The FRDC is designed to address these concerns as the UK rapidly embraces regulated digital payments. As a privately issued digital currency, it offers a level of disintermediation between the public sector and end users, while its assets are backed by 100% full (not fractional) liquid reserves.
As other players strive to develop wholesale sCBDCs for settlements between financial institutions, Millicent’s FRDCs are focused on delivering the savings and benefits of digital currencies to individuals and small and medium businesses in a secure manner. and friendly.
“We are extremely proud to have presented this world-first solution to Innovate UK, especially during such a turbulent time for the crypto markets. Recent issues with popular cryptocurrency platforms underscore the importance of projects like Millicent, which focus on security, stability, and real-world benefits. said Millicent CEO Stella Dyer.
Additionally, Millicent’s network is built on a publicly-authorized infrastructure with democratic community governance, ensuring that everyday users can take their place at the macroeconomics table. In every way, it’s a system designed for the mass adoption of everyday digital finance.
Financial inclusion is a key motivation for Millicent co-founder and CEO Stella Dyer. She came to the UK as a child war refugee and went from living in social housing to Harvard Business School before gaining experience at banks such as Morgan Stanley, JP Morgan and Goldman Sachs, where she led the Global High-tech Investment Banking division. A passionate philanthropist, Ms. Dyer works to create an accessible and equitable financial system that benefits everyone with the goal of unlocking latent prosperity around the world.
Money evolves and millicent builds the financial foundations of the future: a universal digital financial network for all realities, online and offline. Built with next-generation technology, Millicent combines the benefits of distributed ledgers and smart contracts with legacy economic infrastructure. Millicent’s fast, secure and eco-friendly network makes sending, spending and saving money instantly, borderless and accessible to everyone.
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