Moreover, central bank digital currency for general purpose use—that is, for individual consumer use—would raise profound legal, policy, and operational questions. 19 Let’s consider the balance between privacy and illicit activity.
If it is designed to be financially transparent and provide safeguards against illicit activity, a central bank digital currency for consumer use could conceivably require the central bank to keep a running record of all payment data using the digital currency—a stark difference from cash, for instance.