Robert Bench, Director of Applied Research at the Federal Reserve Bank of Boston, Believes privacy should be a priority, not a secondary, in creating digital money.
“Data protection is an issue that we have learned to be of vital importance from a technical point of view.” Bench said during a Chamber of Digital Commerce panel on Friday:
“One of our realizations is that privacy and identity issues should be considered at the earliest stage of the architecture. Making privacy or identity an ad hoc process is sub-optimal from both a privacy and identity perspective. And most importantly, off.” from a safety point of view. “
A largely digitized world often means less privacy. Money is no exception. While the countries rely on digital currencies from the central bank, or CBDCs for short, Payments are less private than cash transactions of the past. However, CBDCs may or may not provide privacy to users.
“It’s something lawmakers will have to think about soon” Bench said in terms of privacy. “If you add it later, it won’t work that well.”
Bench’s comments were in response to a question from moderator and former chairman of the US Commodity Futures Trading Commission, Chris Giancarlo. who asked about privacy issues when dealing with a US CBDC as well as other types of digital money.
In the debate, the co-founder of Tether (USDT), Craig Sellars believed that physical money was the measure of privacy required in the digital world. “It has certain immovable properties: fungibility, privacy and anonymity at the peer level,” he said:
“We should shift our question to this: if we have the technology to get the exact properties of paper dollars, why should we accept digital dollars with less freedom? I claim we should and shouldn’t. “
Sellars said that The United States has “an open field” when it comes to developing a private, cash-based CBDC. in contrast to the “fenced garden” structure used in the efforts of a CBDC from competing countries.
In contrast to this feeling in favor of privacy is the The United States Internal Revenue Service recently hired two cryptanalysis firms to crack the privacy technology behind the anonymity-driven asset, Monero (XMR).