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by gowld 1470 days ago
CBDC has never been about blockchain or cryptocurrency. That's what the first "C" means, and why the "D" isn't a C". It's Venmo or Zelle but run by the government bank.
1 comments

Here's the Fed's Project Hamilton experiment [1]:

> In our design users interact with a central transaction processor using digital wallets storing cryptographic keys. Funds are addressed to public keys and wallets create cryptographic signatures to authorize payments. The transaction processor, run by a trusted operator (such as the central bank), stores cryptographic hashes representing unspent central bank funds. Each hash commits to a public key and value. Wallets issue signed transactions which destroy the funds being spent and create an equivalent amount of new funds owned by the receiver. The transaction processor validates transactions and atomically and durably applies changes to the set of unspent funds. In this version of our work, there are no intermediaries, fees, or identities outside of public keys.

That doesn't sound like Venmo to me.

[1]: https://www.bostonfed.org/news-and-events/press-releases/202...

> transaction processor, run by a trusted operator

> there are no intermediaries

Except the transaction processor.

Which part doesn't sound like Venmo?

"Signed transactions" is essentially SSL/SPIF/I don't know the details but it's regular Internet security encryption and signatures.

The only difference from Venmo is that users get a proper PK instead of phone or email address id, and it's vertically integrated.