Yesterday, the U.S. Treasury’s Assistant Secretary for Financial Institutions, Graham Steele, delivered remarks on the digitization of financial services, honing into central bank digital currencies (CBDCs). Mr. Steele said that Treasury is leading an interagency working group to complement the work of the Federal Reserve and consider the broader implications of any potential U.S. digital dollar. He referred to the challenge of protecting user privacy while minimizing financial crime and the potential of offline capabilities to enhance resilience and financial inclusion.
The U.S. Treasury has been working on assessing the risks and benefits of digital currencies for financial sector stability and other policy objectives.
During his speech, Mr. Steele considered two key focus areas. First, he talked about the now-familiar challenge of protecting user privacy, noting that minimizing the threat of illicit financial transactions will require careful design considerations. Privacy has long been a contentious issue among U.S. citizens, making individuals especially wary of a future digital dollar.
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