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OSTP Releases Technical Evaluation for Potential Central Bank Digital Currency System

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The White House Office of Science and Technology Policy has issued a report that outlines the policy objectives for a U.S. central bank digital currency and presents an analysis of technical design choices for a CBDC system in accordance with a March executive order on digital assets.

The report also analyzes how such technical design choices would impact the policy objectives for CBDC platform, the White House said Friday.

Some of the policy objectives listed in the report are providing benefits and mitigating risks for consumers, investors and businesses; promoting economic growth and financial stability and mitigating systemic risks; and improving payment systems.

The document touches on the feasibility of establishing a minimum viable product for the system and discusses how a CBDC may impact federal operations with a focus on privacy and cybersecurity, social safety net programs and customer experience.

OSTP said the report offers recommendations on how to prepare federal agencies for a CBDC implementation.

The document recommends that the Federal Reserve continue research and experimentation work related to CBDC systems and calls on OSTP and the National Science Foundation to come up with a research-and-development agenda for digital assets to further promote innovation in support of the Federal Reserve’s initiatives.

The report also recommends that the federal government scale up technological capacity, infrastructure and expertise to mitigate risks associated with digital assets.