On Wednesday, the US Treasury Under Secretary Nellie Liang delivered a speech on the future of money and payments, including a potential digital dollar. Ms. Liang said the Treasury would consider the option of providing access to a wholesale Central Bank Digital Currency (CBDC) to non-bank financial institutions, potentially including stablecoin issuers.
As part of the CBDC decision-making process for both retail and wholesale CBDCs, the Treasury is considering how they differ from current central bank reserves in terms of technology and access.
Regarding technology, wholesale CBDCs are likely to be tokenized instead of account-based since digital central bank money is already available today. Token-based CBDCs, which imply blockchains, facilitate on-chain payments and support features such as 24/7 payments, atomic settlement and some degree of programmability.
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