At the other extreme, we could design a CBDC that would allow parties to transact on a fully anonymized basis; this approach would address privacy concerns but would raise significant moneylaundering risks. A final risk is that developing a Federal Reserve CBDC could be expensive and difficult for the Federal Reserve to manage.
A Federal Reserve CBDC could, in essence, set up the Federal Reserve as a retail bank to the general public. That would mean introducing large-scale, resource-intensive central bank infrastructure.