From "Money and Payments: The U.S. Dollar in the Age of Digital Transformation" "Identity-verified: Financial institutions in the United States are subject to

From "Money and Payments: The U.S. Dollar in the Age of Digital Transformation" "Identity-verified: Financial institutions in the United States are subject to robust rules that are designed to combat money laundering and the financing of terrorism. A CBDC would need to be designed to comply with these rules. In practice, this would mean that a CBDC intermediary would need to verify the identity of a person accessing CBDC, just as banks and other financial institutions currently verify the identities of their customers. In this regard, a CBDC would differ materially from cash, which enables anonymous transactions. While central banks are unable to fully prevent cash from being used for illicit purposes, a CBDC could potentially be used at much greater scale and velocity than cash, so compliance with laws designed to combat money laundering and funding terrorism is particularly important for CBDC."[1] "Protecting consumer privacy is critical. Any CBDC would need to strike an appropriate balance, however, between safeguarding the privacy rights of consumers and affording the transparency necessary to deter criminal activity."[1] Privacy is somewhat considered, like in question 12, (How could a CBDC provide privacy to consumers without providing complete anonymity and facilitating illicit financial activity?) but to me it sounds more like privacy as in safeguarding information from third parties than privacy from traceability. [1]https://www.federalreserve.gov/publications/files/money-and-payments-20220120.pdf https://www.federalreserve.gov/publications/files/money-and-...