US Federal Reserve Issues Report on Digital Dollar

In the paper, entitled “Money and Payments: The U.S. Dollar in the Age of Digital Transformation,” the U.S. central bank said it would likely opt for an “intermediary system” in which the private sector would be charged with issuing the digital wallets for the U.S. CBDC. Still, among the Fed’s chief concerns are both cybersecurity and privacy. The Fed says the design and implementation of a potential CBDC must consider consumer privacy and ensure strong identification verification controls to stem money laundering and the financing of terrorism. The Fed has now opened the issue for public comment, which it’s fielding through May 20.