The creation of the digital dollar has remained at the heart of the debates in recent weeks across the Atlantic. If the project to create a CBDC supported by Joe Biden is progressing slowly, it is not favorably received by all legislators. Some of the latter have recently opposed the digital dollar, arguing that this currency would undermine the financial privacy of American citizens if it were to be created. The US Treasury has since looked into this aspect and is studying how to ensure privacy and anonymity for digital dollar users.
US Treasury seeks solutions for private and confidential use of CBDCs
Last March, the FED provided an update on its progress in implementing central bank digital currency (CBDC). It is the turn of the US Treasury to take an interest in this project. Assistant Secretary for Financial Institutions, Graham Steele spills the beans and unveils the company of the American executive body.
During the Transform Payments USA 2023 conference which took place last Tuesday in Texas, he said: “It is important that we examine the extent to which confidentiality and anonymity could be preserved and explore the technologies and methods available, including privacy-enhancing technologies (PETs) to enable such protections in the design of any potential retail CBDC.”
Graham Steele went further, saying that a US Treasury-led group is “currently assessing policy goals related to global financial leadership, national security and privacy, illicit finance, and financial inclusion.”
US Treasury wants better regulation of some digital assets
While Graham Steele unveiled the Treasury business, Janet Yellen, meanwhile, testified before the House Financial Services Committee. The U.S. Treasury Secretary said she remains wary of inadequacies when it comes to spot market regulation of digital assets considered securities and stablecoins.
For Janet Yellen, the American cryptocurrency industry needs “a comprehensive federal prudential framework”. Among other things, she said that the US Treasury would be happy to work with Congress to “develop such a framework”.
If the project of creating a digital dollar is not yet unanimous in the country of Uncle Sam, other countries are making remarkable progress. Brazil, for example, launched a pilot project for its CBDC last March.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
