- Assistant Secretary for Financial Affairs
- Final decision on CBDC not yet made
The U.S. Treasury Department continues to consider the implementation of the digital dollar (CBDC). They are studying how to make retail payments with such currency as anonymous as possible. Assistant Secretary of State Graham Steele said this at the Transform Payments USA 2023 conference.
“It is important to determine the extent to which we can preserve privacy and anonymity in such payments. To that end, the Treasury Department is exploring all available technologies and methods, including Privacy Enhancing Technologies (PETs).”
Privacy Enhancing Technologies are solutions that minimize the use of personal data. This includes a variety of instruments.
Graham Steele also noted the possible risks of the digital dollar, especially mass withdrawals. The recent U.S. banking panic showed just how dangerous technology that allows deposits to move quickly can be.
“This technology is only getting faster. It increases the risks that there will be panic when funds move abruptly.”
The official added that the Treasury Department has not yet made a final decision to implement the U.S. CBDC. The issue is being studied by a specially formed panel.
“We are assessing policy goals related to global financial leadership, national security and privacy, illicit financing and financial inclusion.”
The SEC chairman said last week that the U.S. “does not need more digital currencies.”