In early 2022 the U.S. Federal Reserve ("Fed") published a paper entitled Money and Payments: The U.S. Dollar in the Age of Digital Transformation. This paper summarized payment systems within the U.S. and discussed various digital payment methods, including cryptocurrencies.
It also sought to highlight the potential risks and benefits of a Central Bank Digital Currency (CBDC). Cognizant of the debate around introducing a U.S. CBDC, the Fed invited comments from the public on these topics. For frequently asked questions about CBDC in general, we refer you to the Fed's web page explaining them.
Given StrongKey's expertise in the use of applied cryptography for providing solutions to companies in the payments and financial technology industry, our team was eager to prepare a detailed response to the Fed's request. In it, we offer our suggestions to the questions raised by the Fed, including:
- The security & privacy implications of a CBDC
- Alternative ways to achieve the same benefits as CBDC
- CBDC's affect on financial inclusion and stability
- Cross-border considerations
To read StrongKey's response, please download this letter from our CTO to the Digital Innovations team at the Fed. Other public comments received by the Fed can be found here.
As always, email us at getsecure@strongkey.com for more information!
