Robert Bench, director of applied research at the Federal Reserve Bank of Boston, believes that privacy must be considered in the design of government cryptocurrencies.
Robert Bench, speaking at a meeting of the Chamber of Digital Commerce, stressed that the privacy of digital currency transactions is critical “from a technical point of view.” He said:
“We realized that privacy and identity issues need to be considered early in the development of digital currencies. If the privacy of transactions is only a side task, then it is not optimal from the point of view of confidentiality, and most importantly, from the point of view of security.
Cash has an important function – anonymity. And, when planning government cryptocurrencies, developers often forget about it. According to Bench, digital currencies do not have to be anonymous, but if developers decide that this is necessary, then the issue of privacy should be worked out from the very beginning.
Tether co-founder Craig Sellars also participated in the meeting. He noted that cash has certain properties: fungibility, confidentiality and anonymity.
“We have to ask ourselves: if we have the technology to preserve these properties of paper money, then why should we accept digital dollars with less freedom? I affirm that we do not want to accept such digital currencies, and we should not accept them, ”he said.
Recall that, as previously stated by analysts at Deutsche Bank, government cryptocurrencies may well replace cash and eliminate intermediaries in the banking system.