US-based OSTP unit provides their analysis on 18 CBDC blueprints | The Financial Express

US-based OSTP unit provides their analysis on 18 CBDC blueprints

According to Cointelegraph, technical analysis pertaining to 18 CBDC design choices happened across six categories such as participants, governance, security, transactions, data and adjustments

US-based OSTP unit provides their analysis on 18 CBDC blueprints
The OSTP report emphasised on the implications of third party involvement in the two design choices under the participants approach namely transport layer and interoperability

With instructions from United States-based president Joe Biden, the Office of Science and Technology Policy (OSTP) gave a report for analysing of the design choices pertaining to 18 central bank digital currency (CBDC) systems for expected implementation in the US, as reported by Cointelegraph.

According to Cointelegraph, technical analysis pertaining to 18 CBDC design choices happened across six categories such as participants, governance, security, transactions, data and adjustments. The OSTP foresees complexities and limitations when trying for the development of a permissionless system controlled by a central bank.

“It is possible that the technology underpinning a permissionless approach will improve over time, which might make it suitable to be used in a CBDC system,” the OSTP stated.

On the basis of information by Cointelegraph, the analysis made the assumption about the presence of a central authority and a permissioned CBDC system. The OSTP report emphasised on the implications of third party involvement in the two design choices under the participants approach namely transport layer and interoperability, by helping policymakers have their take on the CBDC system. Matters on governance emphasised on factors related to permissioning, access tiering, identity privacy and remediation, with other factors including cryptography, secure hardware (for security), signatures, transaction privacy, offline transactions and transaction programmability (for transactions), data model and ledger history (for data) and fungibility, holding limits and adjustments on transactions and balances (for transactions).

Moreover, Cointelegraph noted that the report’s technical evaluation for a US CBDC system highlighted the report’s focus on an off-ledger, hardware protected system. Furthermore, the OSTP provided suggestions on the importance of considering environmental and energy impact of cryptocurrency assets in US.

“Noting direct comparisons are complicated, Visa, MasterCard, and American Express combined […] consumed less than 1% of the electricity that Bitcoin and Ethereum used that same year, despite processing many times the number of on-chain transactions and supporting their broader corporate operations,” the report stated.

(With insights from Cointelegraph) 

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