Robert Bench, the Federal Reserve Bank of Boston’s director of applied research, thinks privacy should be a focus during the creation of digital money, not an afterthought.
“Privacy is a question that we have learned is critical from a technical perspective,” Bench said during a Chamber of Digital Commerce panel on Friday:
“One of our learnings is that the questions of privacy and identity must be considered at the earliest stage of the architecture. Making privacy or identity an ad hoc process is suboptimal from both a privacy or identity perspective, and most importantly from a security perspective.”
A largely digital world often means less privacy. Money is no exception. While countries look toward central bank digital currencies, or CBDCs, payments are less private than the cash transactions of yesterday. CBDCs may or may not give users privacy, however.
“It’s something that policy makers are going to need to think about early,” Bench said of privacy. “When