Response to the Digital Dollar Project Whitepaper

Owned by Vipin Bharathan
Last updated: May 03, 2021
2 min read

Latest (05/03/2021) news from DDP: https://static1.squarespace.com/static/5e16627eb901b656f2c174ca/t/5f848c188da760453f6960fc/1602522137441/Pilot+Scenarios+10_12_20.pdf - they hope to launch five use cases.


https://www.digitaldollarproject.org/exploring-a-us-cbdc



Some reference materials and initial questions:

Digital Dollar Project (DDP): An open discussion on the whitepaper

  • Karen Ottoni will provide a summary of the paper to initiate the discussion
  • Open forum:
    • What are your thoughts related to a US Digital Dollar?
    • What is missing from the paper or outstanding questions you have?
    • Which of the use cases presented is most compelling to you? Which is most likely to come first, why?
    • Are there other models that should be considered?
    • Token-based digital dollar vs. account-based digital dollar
    • DLT vs. no DLT? Permissioned vs. Permissionless?

Related material:

e-Krona paper 2




A formal response can be provided to the Digital Dollar Project on their Whitepaper.

To bootstrap that we have a bunch of questions that came up during the meeting of . A link to the the meeting minutes and recordings is provided.

Please volunteer to take up one of these topics and prepare your response based on your reading of the DDP whitepaper. This should be done by the first week of August.

We can follow through on sending this response into the DDP.

Questions:

  1. Interoperability. Answer: use standards
  2. Privacy vs AML/KYC - (see above) Stephane Mouy: One question - How does this proposal accommodate Anti-money laundering requirements ? Although the account model no doubt has many limitations and is costly, one benefit is that it puts the onus on established third parties (financial service providers which are regulated entities) to ensure compliance with AML requirements. How would this apply here?
  3. How does it co-exist with cash? - RonQ
  4. Peer to peer without eventual reconciliation.
  5. Focus on payments infrastructure.
  6. Two tier system vs direct claims - tokens migrating- distribution of cbdc through ATMs
    1. token migration from one network tier to another:  this is a huge technical challenge.  Blockchain interoperability solutions like Polkadot provide bridge infrastructure between blockchains but no token movement between blockchains. Would love to hear any technology research or emerging solutions on this.
  7. What about the cloud architecture should support the project? How AWS, Google, Microsoft and other big players will interact with Fed?