A recent paper from the U.S. Federal Reserve explores wholesale central bank digital currency (wholesale CBDC). Specifically it looks at whether it could tokenize existing central bank reserves. Or if it’s necessary to have a ‘wholesale CBDC’ as a new form of money. It concludes a digital dollar as a new form of money is not necessary but might be desirable from a risk management perspective.
We also explore whether this Fed analysis relates to whether or not a wholesale CBDC requires Congressional approval.
In the traditional world, payment systems simply transmit messages. In a DLT world you have a payment network that moves money rather than messages.
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