Project Hamilton 2.0: The Digital Dollar
The Federal Reserve has officially announced a pilot program for a wholesale CBDC, set to launch in late 2026. This move aims to modernize interbank settlements and maintain the dollar's dominance in a digitizing global economy.
Implications for Banking
Commercial banks will play a nodal role in this tiered system. The fear of disintermediation has been quelled by a design that preserves the two-tier banking system.
Privacy Concerns
The Fed has emphasized "privacy by design," utilizing zero-knowledge proofs to ensure transaction anonymity for users while maintaining compliance capability for illicit finance tracking.