The White House showed another positive inkling toward adopting and designing its CBDC system after receiving a report from OSTP. According to reports, the Office of Science and Technology Policy made available 18 possible CBDC systems that the country could choose from for its design. The report claimed that the agency in charge of the policy categorized these 18 CBDCs across six different categories for its design.
The White House might consider a permissioned CBDC system
In the report, the categories considered were how feasible it would be for holders of the CBDC, the governance protocol, and how transaction data are stored, among other things. However, the OSTP has warned that there could be minor difficulties if the country wants to create a system that would be permissionless which would be under the control of the premier bank in the country.
The body noted that since a permissionless system will undergo improvements over time, it will be better used in a CBDC system. However, the report claimed that the US might be moving towards a CBDC system under the central bank, which means that it will use a permissioned system. The OSTP also highlighted the effects of designing with a third party in mind.
OSTP wants to watch digital asset usage
The report also highlighted other vital issues that the OSTP discussed in building the ideal CBDC. These include security, signatures, type of transactions ( online and offline), and balances, among other vital details. In the technical report, the body feels the US could be looking into a system that would be protected by hardware and is located on an off ledger. In a previous report, the OSTP advised the White House to look into the impacts of digital assets in the country, especially regarding energy and how it impacts the environment.
In the report to the White House, the body claimed that about 50 billion Kw/h is expended annually in the country. This equals a figure of around 40% of the world’s total energy usage. In the report, the OSTP highlighted the basic energy usage to the White House. The body noted that although companies like MasterCard and Visa completed more transactions on chain last year, they used less electricity than top digital assets. However, the body noted that only crypto uses proof of work that consumes massive amounts of energy.
