Central Bank Digital Currency Design Choices and Effect on Law Enforcement

Jim Mignano, Daniel Egel, Phoebe Rose Levine, Daniel Cunningham, Brian A. Jackson, John S. Hollywood, Lucy L. Thomson, Dulani Woods

ResearchPublished Apr 16, 2025

The Federal Reserve’s exploration of a U.S. Central Bank Digital Currency (CBDC) raises questions about its impact on U.S. law enforcement’s ability to detect and investigate crime. This report, informed by expert interviews and a scenario-based workshop, identifies key CBDC design choices affecting law enforcement capabilities. It underscores the need to evolve investigative techniques to meet relevant challenges if a U.S. CBDC is launched.

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Mignano, Jim, Daniel Egel, Phoebe Rose Levine, Daniel Cunningham, Brian A. Jackson, John S. Hollywood, Lucy L. Thomson, and Dulani Woods, Central Bank Digital Currency Design Choices and Effect on Law Enforcement, Homeland Security Operational Analysis Center operated by the RAND Corporation, RR-A2952-1, 2025. As of April 30, 2025: https://www.rand.org/pubs/research_reports/RRA2952-1.html

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Mignano, Jim, Daniel Egel, Phoebe Rose Levine, Daniel Cunningham, Brian A. Jackson, John S. Hollywood, Lucy L. Thomson, and Dulani Woods, Central Bank Digital Currency Design Choices and Effect on Law Enforcement. Homeland Security Operational Analysis Center operated by the RAND Corporation, 2025. https://www.rand.org/pubs/research_reports/RRA2952-1.html.
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This research was sponsored by the Technology Centers Division at the U.S. Department of Homeland Security Science and Technology Directorate and conducted in the Infrastructure, Immigration, and Security Operations Program of the RAND Homeland Security Research Division.

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