Central bank money report

Central banks release report on digital money: 

Counterfeiting and cyber risk present a challenge. Cash has sophisticated anti-counterfeiting features and large-scale issues rarely occur. Theoretically, a successful cyber attack on a digital CBDC system could quickly threaten a significant number of users and their confidence in the wider system (as it could for a large bank or payment service provider). Defending against cyber attacks will be made more difficult as the number of endpoints in a general purpose CBDC system will be significantly larger than those of current wholesale central bank systems.

Not quite correct. Paper cash, counterfeit proofed, is the current end point for central banks.  Digital money need only compete with paper cash for security, and I have shown this is easily done so many times. 

For the central banks contributing to this report, most of the adult population in their jurisdictions can conveniently access electronic payments. However, increasing digitalisation could leave some sections of society behind as potential barriers around trust, digital literacy, access to IT and data privacy concerns create a digital divide. For central banks in many emerging market economies, a key driver for researching CBDC is the opportunity to improve financial inclusion (Boar et al (2020)).

Due process baning, I have that covered, and it will be a legal requirement of the Law in the USA. It is solved by making everyone a Swift bank by virtue of the secure, hand held personal ID with contract enforcement.

Full anonymity is not plausible.

 Full anonymous cash within a preset limit is perfectly plausible once we have enforceable contracts. In fact it is a necessity for full inclusion and Due Process banking.

Cross-border payments and CBDC

 Every connection is a Swift bank, any and all bank transfers are a simple as can be.  But we add the capability of inter monetary transfers, swaps across different monetary systems.

Beyond bearing interest, there has also been public discussion about CBDC use to stimulate aggregate demand through direct transfers to the public (so-called “helicopter drops”),

 The most horrid of the horrids, no no no. 

The New Fed leaves coinage power to Treasury, let them write an app for our Swift cards,  and pass out digits within their double spending contract, or via taxes. Let Treasury deal with Senate, House and Supremes on this issue.  This is a no, no, no on this an do not let MIT trick you on any of this. Banks and legislation do not mix, except at contract renewal time.