US Treasury Researches CBDC Privacy Concerns: Addressing Digital Dollar Risks
Amidst the discussions of a digital dollar implementation, the US Treasury is reportedly researching an answer to Central Bank Digital Currency (CBDC) privacy concerns. The potential introduction of a CBDC in the United States raises critical questions about individual privacy and data security. This research aims to identify and mitigate these risks before a digital dollar is launched.
Ensuring data privacy and consumer protection are of paramount concern in discussions around central bank digital currencies (CBDCs). The US Treasury understands that public trust hinges on a CBDC that protects citizens' financial information from unauthorized access and misuse. A poorly designed CBDC could have severe consequences for personal freedoms and economic stability.
Flawed assumptions in CBDC designs around accounts, wallet control, and privacy call for a more innovative, privacy-focused approach. Current CBDC models often lack the safeguards needed to prevent surveillance and maintain anonymity. The Treasury's research seeks to develop a digital dollar that balances efficiency and security with strong privacy protections.
Privacy and the ability to transact anonymously should be considerations in the design of a digital dollar, a United States Treasury official has said. This statement underscores the government's commitment to addressing privacy concerns. The goal is to create a CBDC that respects individual rights while still enabling legitimate transactions.
Concerns about data privacy in the potential introduction of CBDCs are widespread. In the CFA Institute’s CBDC survey, conducted in February 2025, 63% of charterholders said they were concerned about data privacy. These concerns highlight the urgent need for robust privacy measures to be integrated into the design of any future digital dollar, potentially through complex coding systems.
The US Treasury's ongoing research is crucial for ensuring that a digital dollar, if implemented, upholds the principles of privacy and security. By addressing these concerns proactively, the Treasury can build public trust and create a CBDC that benefits all Americans.