USD that isn’t a physical note is already a CBDC.
It’s not spendable without permission, you need KYC to use it, and it’s a liability of the federal reserve by proxy
Discussion
As a CBDC, the amount of data collection, storage and control the government will have is a lot bigger.
Key word is “government” here. Digital dollars right now expose your transactions and data to your bank, which the government can obtain through subpoena or other measure. But a CBDC exposes your transactions and data directly to the government without even needing to coordinate with a bank.
Indeed, no intermediary needed. Government will be intertwined with the bank basically.
The US government is not capable of pulling this off. Especially when, as you point out, the data already exists. They’ll erode civil rights and increase their ability to access the data before they commission a whole new system
The new system has already been commissioned, and the first iteration, while not a full on CBDC, is being launched in July. https://www.federalreserve.gov/newsevents/pressreleases/other20230315a.htm
wow that’s brilliant. put all the financial institutions on fed protocol and then everyone is in
They won’t, because they’ve already outsourced this to banks and financial intermediaries via money transmission and AML/KYC laws. The data is just a law enforcement request away