A Digital Dollar Framework refers to the conceptual and operational design for a potential central bank digital currency (CBDC) issued by the United States Federal Reserve. This framework would outline the technological architecture, policy objectives, and economic implications of a digital version of the US dollar. It considers various models for issuance, distribution, and privacy. The objective is to assess how a CBDC could enhance payment systems and financial inclusion.
Context
The discussion around a Digital Dollar Framework remains a prominent topic in financial news, reflecting global interest in CBDCs and their potential impact on monetary policy and commercial banking. Key debates include privacy concerns, the role of intermediaries, and the necessity of a digital dollar compared to existing payment solutions. Future developments depend on policy decisions and further research into the technical feasibility and societal benefits of such a system.
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