Rather, risk seems to be more like a binary (“on or off”) process; • finally, the emerging economies were in such a state of transition or flux that it is not sensible to think of this as an equilibrium process, with profit expectations continuously equilibrated across international markets.
- 13 -  and protections for Federal Reserve notes in the current system, it is untested for new instruments such as CBDC and, more generally, other digital currencies. A different approach may be necessary to ensure that holders of CBDC have appropriate protections, including privacy rights, fraud protection, digital identity safeguards, and data protection.