Discussion Paper
Comparing Means of Payment: What Role for a Central Bank Digital Currency?
Wong, Paul; Maniff, Jesse Leigh (2020-08-13)
This paper looks at the potential benefit that a central bank digital currency (CBDC) could provide in the context of existing payment mechanisms. Central banks today provide the primary payment mechanisms for trade and commerce: cash, used by the public, and electronic payment services, used by eligible financial institutions.
FEDS Notes , Paper 2020-08-13-2

Discussion Paper
Tokens and Accounts in the Context of Digital Currencies
Lee, Alexander; Malone, Brendan; Wong, Paul (2020-12-23)
This report provides an overview of two concepts that come up frequently in discussions of digital currencies: tokens and accounts. The meaning of each concept differs depending on context. For cryptocurrencies, the term "token" has a relatively straightforward, technology-specific definition. For central bank digital currencies (CBDC), the term "token" takes on more of a conceptual or analytical meaning. To further complicate matters, "tokens" and "accounts" are not always mutually exclusive ideas. This paper identifies areas where this terminology has caused confusion and explains why the ...
FEDS Notes , Paper 2020-12-23

Discussion Paper
An Examination of First-Mover Advantage for a CBDC
Isaacson, Ken; Maniff, Jesse Leigh; Wong, Paul (2022-11-25)
This paper explores whether there could be a first-mover advantage for a jurisdiction issuing a central bank digital currency (CBDC) compared to other jurisdictions that subsequently issue their own CBDC. Conventional academic literature provides a framework by which one can assess a CBDC in the domestic payments market, the international payments market, and the technology markets that support payments. However, a CBDC may be more than just a means of payment and thus first-mover advantage is examined for both the asset component of reserve currency and a future financial system built on ...
FEDS Notes , Paper 2022-11-25

Discussion Paper
Observations from the FooWire Project: Experimenting with DLT for Payments Use
Buttecali, Jillian; Proom, Zachary; Wong, Paul (2020-08-13)
In 2019, a team at the Federal Reserve Board (Board) conducted small-scale experimentation, named the "FooWire project," to build a payment system using distributed ledger technology (DLT). The team built the system using Hyperledger Fabric, a popular DLT platform, because it generally met the team's design requirements of a closed network, mature technology, and enterprise readiness.
FEDS Notes , Paper 2020-08-13-1