A CBDC Could Pose Significant Risks to Privacy of Americans, Says Fed Governor – Here’s Why

0 10

knife

Federal Reserve Governor Michelle Bowman says the adoption of a digital US dollar comes with challenges and tradeoffs despite the opportunities that the new financial system could bring.

During a speech on Tuesday, Bowman says that one of the leading concerns about the central bank digital currency (CBDC) is its significant risks to privacy.

“In thinking about the implications of CBDC and privacy, we must also consider the central role that money plays in our daily lives, and the risk that a CBDC would provide not only a window into, but potentially an impediment to, the freedom Americans enjoy in choosing how money and resources are used and invested.”

Bowman says that proper measures should be in place to safeguard the privacy of consumers and businesses. She says the system should also be transparent enough to deter criminal activities.

“We must ensure that consumer data privacy protections embedded in today’s payment systems continue and are extended into future systems.

So, a central consideration must be how a potential US CBDC could incorporate privacy considerations into its design, and what technology and policy options could support a robust privacy framework.”

She says privacy concerns will be easier to manage with wholesale CDBC whose use will be restricted to financial institutions than with retail CBDC, which will be accessible to the general public.

“The issue of privacy may be less difficult to address in the case of wholesale use cases, in which a CBDC would only be used by traditional financial institutions to conduct a limited range of financial market transactions. As with many of these considerations, the purpose and intended function of a CBDC has a major impact on its policy and design considerations.”

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox



Check Price Action



Follow us on Twitter, Facebook and Telegram



Surf The Daily Hodl Mix


Check Latest News Headlines

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post A CBDC Could Pose Significant Risks to Privacy of Americans, Says Fed Governor – Here’s Why appeared first on The Daily Hodl.

Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 50,956.65
ethereum
Ethereum (ETH) $ 3,043.18
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 385.47
solana
Solana (SOL) $ 101.62
staked-ether
Lido Staked Ether (STETH) $ 3,040.24
xrp
XRP (XRP) $ 0.533134
usd-coin
USDC (USDC) $ 0.999126
cardano
Cardano (ADA) $ 0.574983
avalanche-2
Avalanche (AVAX) $ 36.43
tron
TRON (TRX) $ 0.137491
dogecoin
Dogecoin (DOGE) $ 0.084334
chainlink
Chainlink (LINK) $ 18.20
polkadot
Polkadot (DOT) $ 7.63
matic-network
Polygon (MATIC) $ 0.976586
uniswap
Uniswap (UNI) $ 10.62
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 50,983.66
the-open-network
Toncoin (TON) $ 2.11
shiba-inu
Shiba Inu (SHIB) $ 0.000009
internet-computer
Internet Computer (ICP) $ 12.15
bitcoin-cash
Bitcoin Cash (BCH) $ 263.07
litecoin
Litecoin (LTC) $ 69.24
dai
Dai (DAI) $ 0.999672
immutable-x
Immutable (IMX) $ 3.18
filecoin
Filecoin (FIL) $ 7.83
cosmos
Cosmos Hub (ATOM) $ 10.33
near
NEAR Protocol (NEAR) $ 3.74
leo-token
LEO Token (LEO) $ 4.18
ethereum-classic
Ethereum Classic (ETC) $ 26.78
kaspa
Kaspa (KAS) $ 0.161866
bittensor
Bittensor (TAO) $ 579.23
optimism
Optimism (OP) $ 3.69
blockstack
Stacks (STX) $ 2.44
hedera-hashgraph
Hedera (HBAR) $ 0.103812
aptos
Aptos (APT) $ 9.38
vechain
VeChain (VET) $ 0.046575
first-digital-usd
First Digital USD (FDUSD) $ 0.998159
stellar
Stellar (XLM) $ 0.114289
injective-protocol
Injective (INJ) $ 35.06
okb
OKB (OKB) $ 49.86
lido-dao
Lido DAO (LDO) $ 3.35
mantle
Mantle (MNT) $ 0.891358
celestia
Celestia (TIA) $ 16.25
render-token
Render (RNDR) $ 7.15
the-graph
The Graph (GRT) $ 0.286812
crypto-com-chain
Cronos (CRO) $ 0.092576
monero
Monero (XMR) $ 128.11
arbitrum
Arbitrum (ARB) $ 1.82
sei-network
Sei (SEI) $ 0.792414
maker
Maker (MKR) $ 2,046.41
rocket-pool-eth
Rocket Pool ETH (RETH) $ 3,344.99
sui
Sui (SUI) $ 1.58
beam-2
Beam (BEAM) $ 0.031933
thorchain
THORChain (RUNE) $ 5.36
algorand
Algorand (ALGO) $ 0.197861
flare-networks
Flare (FLR) $ 0.045793
mantle-staked-ether
Mantle Staked Ether (METH) $ 3,082.21
elrond-erd-2
MultiversX (EGLD) $ 57.19
quant-network
Quant (QNT) $ 103.91
flow
Flow (FLOW) $ 0.998304
aave
Aave (AAVE) $ 98.73
bitcoin-sv
Bitcoin SV (BSV) $ 73.67
dydx-chain
dYdX (DYDX) $ 3.35
theta-token
Theta Network (THETA) $ 1.38
bitget-token
Bitget Token (BGB) $ 0.980808
starknet
Starknet (STRK) $ 1.88
mina-protocol
Mina Protocol (MINA) $ 1.25
ordinals
ORDI (ORDI) $ 62.91
havven
Synthetix Network (SNX) $ 3.95
true-usd
TrueUSD (TUSD) $ 0.973763
tokenize-xchange
Tokenize Xchange (TKX) $ 15.50
worldcoin-wld
Worldcoin (WLD) $ 8.87
helium
Helium (HNT) $ 8.29
the-sandbox
The Sandbox (SAND) $ 0.519536
fantom
Fantom (FTM) $ 0.412072
chiliz
Chiliz (CHZ) $ 0.130051
apecoin
ApeCoin (APE) $ 1.91
axie-infinity
Axie Infinity (AXS) $ 8.21
gala
GALA (GALA) $ 0.032683
fetch-ai
Fetch.ai (FET) $ 1.06
blur
Blur (BLUR) $ 0.725955
whitebit
WhiteBIT Coin (WBT) $ 7.11
kucoin-shares
KuCoin (KCS) $ 10.60
bittorrent
BitTorrent (BTT) $ 0.000001
dydx
dYdX (ETHDYDX) $ 3.34
cheelee
Cheelee (CHEEL) $ 18.53
arweave
Arweave (AR) $ 15.12
osmosis
Osmosis (OSMO) $ 1.56
tezos
Tezos (XTZ) $ 1.09
sats-ordinals
SATS (Ordinals) (SATS) $ 0.00000045822277
decentraland
Decentraland (MANA) $ 0.519388
frax-ether
Frax Ether (FRXETH) $ 3,054.41
singularitynet
SingularityNET (AGIX) $ 0.731538
woo-network
WOO (WOO) $ 0.500073
akash-network
Akash Network (AKT) $ 3.97
conflux-token
Conflux (CFX) $ 0.23994
dymension
Dymension (DYM) $ 6.12
ronin
Ronin (RON) $ 2.98
eos
EOS (EOS) $ 0.779556
astar
Astar (ASTR) $ 0.158653