Discussion Paper
Tokens and Accounts in the Context of Digital Currencies
Wong, Paul; Lee, Alexander; Malone, Brendan (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
Preconditions for a General-Purpose Central Bank Digital Currency
Wong, Paul; Cheng, Jess; Lawson, Angela N (2021-02-24)
Over the last few years, interest in the potential issuance of a general-purpose central bank digital currency (CBDC) has increased. Introducing and operating a CBDC would require actions by many stakeholders and not just the central bank. In view of the far-reaching implications of introducing a new form of money to the public, the decision cannot be taken lightly. This paper outlines foundational preconditions and proposes areas of work that may help achieve them prior to the possible implementation of a potential future general-purpose CBDC in the United States. These foundational ...
FEDS Notes , Paper 2021-02-24-1

Discussion Paper
Comparing Means of Payment: What Role for a Central Bank Digital Currency?
Maniff, Jesse Leigh; Wong, Paul (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
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