The U.S. Federal Reserve, Treasury Department, and Congress have begun
considering the viability of a Central Bank Digital Currency (CBDC), a legal
tender national digital currency for consumer use. They are understandably
focused on domestic policy issues such as potential impact on U.S. financial
stability or expanding public access to financial services. The national
security implications of CBDCs are not yet central considerations for U.S.
policymakers, but they should be.
Digitized currency is data. Digital currency will move across international
borders, potentially revealing information harmful to individual, corporate,
or national interests. The United States could play a critical role in fostering
open and collaborative technologies that protect this data — upholding
privacy and security standards while maintaining lawful auditability in a
fully digital economic world. But the United States lags other nations in its
consideration of a CBDC.

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