Melissa Bender Talks about the Potential for a Federal Reserve-Backed Digital Currency
As the U.S. considers establishing a digital currency backed by the Federal Reserve, a Reuters video story looks at how this would work and the legal issues that need to be addressed.
In the segment, asset management partner Melissa Bender (San Francisco) explains that a digital dollar could take the form of either a ledger system, tracking the addition and subtraction of funds, or a digital token like Bitcoin.
Melissa notes that an open question concerning privacy is who would have access to know how digital dollars are spent. Legal issues concerning liability for potential digital dollar fraud and hacking would also need to be resolved.