Wall Street and Fed will test digital currency. Cryptocurrencies rebound 📈

The cryptocurrency industry has been rocked by reports of Wall Street partnering with the New York Fed to test digital currencies. The Federal Reserve Bank of New York will work with nearly a dozen banks and financial institutions to test digital dollars. This shows that Wall Street is pushing for the development of a blockchain program despite recent market volatility caused by the FTX bankruptcy:

• As part of the 12-week test, banks such as Citigroup and Wells Fargo will work with the New York Fed's innovation center on a new blockchain network. The technology will allow banks to simulate the issuance of digital money representing customers' own funds before settling on a distributed ledger using the central bank's foreign exchange reserves;
• Participants in the program include BNY Mellon, Citi, HSBC, Mastercard, PNC Bank, TD Bank, Truist, U.S. Bank and Wells Fargo and Deloitte will provide consulting services. Global financial messaging service provider SWIFT also supports interoperability across the international financial ecosystem. Recall, however, that SWFIT is scheduled to be replaced by ISO20022 by 2025, according to the program;
• The New York Innovation Center (NYIC) is creating a so-called proof-of-concept with members of the private sector to study the interoperability of digital networks, central bank obligations and commercial banks' digital money. Blockchain will potentially enable advances in payments due to facilitated cross-border payments and reduced transaction processing times;
• Current blockchain-based exchange mechanism designs still do not enable interoperable transfer and settlement of digital assets between regulated financial institutions.
• The Regulated Liability Network is expected to make available an infrastructure containing a digital image of central bank, commercial bank and regulated dollar-denominated liabilities of non-bank issuers;
• Upon completion of the trial project, a report will be published that will summarize the results of the design and testing. The report will include a preliminary outline of guidelines for participants in the theoretical digital financial market and a legal assessment of settlement and other aspects of RLN design.

Cryptocurrencies are trading higher on the wave of these reports and increased risk appetite on Wall Street. Gains are being made by ALGORAND, a cryptocurrency project compliant with the new settlement standardISO20022 in the past funded by BlackRock. The cryptocurrency is also one of the sponsors of the World Cup, which will begin in Qatar in November.Algorand cryptocurrency chart, H4 interval. The cryptocurrency has halted declines near $0.24 and is heading toward the SMA50 average, which runs around $0.30 per token. RSI indicates still moderate levels, which could potentially herald further room for growth.  Source: xStation5