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| ====== 4.6 International Considerations ====== | ====== 4.6 International Considerations ====== | ||
| - | [[cbdc:private:cbdc_omg:04_doc:15_common:start| Return to Common Elements]] | + | |< 100% >| |
| + | | [[cbdc:public:cbdc_omg:04_doc:15_common:start| Return to Common Elements]] | <WRAP> | ||
| + | <html><b> | ||
| + | <a href="mailto:[email protected]?Subject=OMG's CBDC WG Response: | ||
| + | 4.6 International Considerations | ||
| + | ">Provide Feedback</a></b> | ||
| + | </html> | ||
| + | </WRAP> | | ||
| ===== Overview ===== | ===== Overview ===== | ||
| - | [[cbdc:private:cbdc_omg:04_doc:15_common:50_international:start | Return to Top]] | + | [[cbdc:public:cbdc_omg:04_doc:15_common:50_international:start| Return to Top]] |
| The [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.a_glossary:b:bis | Bank for International Settlements (BIS)]] has produced a paper on Central Bank Digital Currencies discussing the foundational principles and core features of a CBDC. The following is an excerpt from the Executive Summary:(( | The [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.a_glossary:b:bis | Bank for International Settlements (BIS)]] has produced a paper on Central Bank Digital Currencies discussing the foundational principles and core features of a CBDC. The following is an excerpt from the Executive Summary:(( | ||
| Bank for International Settlements (BIS), | Bank for International Settlements (BIS), | ||
| Report no 1, | Report no 1, | ||
| - | __Central Bank Digital Currencies - foundational principles and core feature__, | + | __Central Bank Digital Currencies - foundational principles and core features__, |
| ISBN: 978-92-9259-427-5 (online) | ISBN: 978-92-9259-427-5 (online) | ||
| 2020, | 2020, | ||
| Line 28: | Line 35: | ||
| **Desirement** is a blended word combining the word **Desire** and **Requirement**. **Desirement** is something that is desired, but not absolutely required and is often used to caption the capabilities of a product or system before it has reached the formal requirements phase. | **Desirement** is a blended word combining the word **Desire** and **Requirement**. **Desirement** is something that is desired, but not absolutely required and is often used to caption the capabilities of a product or system before it has reached the formal requirements phase. | ||
| Source: [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.a_glossary:d:desirement | Desirement]] | Source: [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.a_glossary:d:desirement | Desirement]] | ||
| - | )) in a **White Paper** named [[https://www.federalreserve.gov/publications/files/money-and-payments-20220120.pdf | Money, and Payments: The U.S. Dollar in the Age of Digital Transformation]]. These "Desirements" were captured and summarized in a [[cbdc:private:cbdc_omg:04_doc:12_summary:start| White Paper Analysis]] conducted by the [[https://www.omg.org/ | Object Management Group ]]. Ultimately, these "Desirements" need to be incorporated into a **CBDC Data Strategy** following the guidelines set by the U.S. government for government entities to develop a Federal Data Strategy. | + | )) in a **White Paper** named [[https://www.federalreserve.gov/publications/files/money-and-payments-20220120.pdf | Money, and Payments: The U.S. Dollar in the Age of Digital Transformation]]. These "Desirements" were captured and summarized in a [[cbdc:public:cbdc_omg:04_doc:12_summary:start| White Paper Analysis]] conducted by the [[https://www.omg.org/ | Object Management Group's ]] CBDC WG. Ultimately, these "Desirements" need to be incorporated into a **CBDC Data Strategy** following the guidelines set by the U.S. government for government entities to develop a Federal Data Strategy. |
| - | The Federal Reserve has suggested a "Desirement" to have the CBDC used internationally and as a mechanism to transfer funds across borders. These "Desirements" need to be added to a Federal Reserve CBDC Data Strategy. For more information, the OMG DIDO-RA provides a discussion on [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.l_regulations:fds | Federal Data Strategy]]. The Federal Reserve and the implementation of the CBDC should formulate their own **Federal Data Strategy**. The Data Strategy should also address matters covered in Section [[cbdc:private:cbdc_omg:04_doc:15_common:45_privacy:start]]. | + | The Federal Reserve has suggested a "Desirement" have the CBDC used internationally and as a mechanism to transfer funds across borders. These "Desirements" need to be added to a Federal Reserve CBDC Data Strategy. For more information, the OMG DIDO-RA provides a discussion on [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.l_regulations:fds | Federal Data Strategy]]. The Federal Reserve and the implementation of the CBDC should formulate their own **Federal Data Strategy**. The Data Strategy should also address matters covered in Section [[cbdc:public:cbdc_omg:04_doc:15_common:45_privacy:start]]. |
| Since the Federal Reserve is striving for a CBDC with international appeal, it also needs to develop a Data Strategy, covering [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.l_regulations:data_residency | Data Governance, Compliance and Regulation]]. Table {{ref>dataLocation}} provides some insight into data governance the CBDC needs as part of a **Data Strategy**. | Since the Federal Reserve is striving for a CBDC with international appeal, it also needs to develop a Data Strategy, covering [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.l_regulations:data_residency | Data Governance, Compliance and Regulation]]. Table {{ref>dataLocation}} provides some insight into data governance the CBDC needs as part of a **Data Strategy**. | ||
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| ===== Governance Issues Associated with Data Storage ===== | ===== Governance Issues Associated with Data Storage ===== | ||
| - | <nspages :cbdc:private:cbdc_omg:04_doc:15_common:50_international -tree -r -exclude -subns -pagesInNs -h1 -textNs=""> | + | <nspages :cbdc:public:cbdc_omg:04_doc:15_common:50_international -tree -r -exclude -subns -pagesInNs -h1 -textNs=""> |
| ===== Examples ===== | ===== Examples ===== | ||
| - | [[cbdc:private:cbdc_omg:04_doc:15_common:50_international:start | Return to Top]] | + | [[cbdc:public:cbdc_omg:04_doc:15_common:50_international:start| Return to Top]] |
| - | The following "Desirements" are from the [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:private:cbdc_omg:15_summary:start&do=edit | White Paper]] as identified by the [[https://www.omg.org/ | Object Management Group's ]] report called [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:private:cbdc_omg:15_summary:start | White Paper Analysis]]: | + | The following "Desirements" are from the [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:public:cbdc_omg:15_summary:start&do=edit | White Paper]] as identified by the [[https://www.omg.org/ | Object Management Group's ]] CBDC WG report called [[cbdc:public:cbdc_omg:04_doc:12_summary:start | White Paper Analysis]]: |
| <table> | <table> | ||
| - | <caption>Example of mapping a subset of requirements identified during the White Paper Analysis conducted by the OMG</caption> | + | <caption>Example of mapping a subset of requirements identified during the White Paper Analysis conducted by the OMG's CBDC WG</caption> |
| |< 100% 20% ->| | |< 100% 20% ->| | ||
| ^ Category ^ Desirements ^ | ^ Category ^ Desirements ^ | ||
| Line 85: | Line 92: | ||
| ===== Example Discussion ===== | ===== Example Discussion ===== | ||
| - | [[cbdc:private:cbdc_omg:04_doc:15_common:50_international:start | Return to Top]] | + | [[cbdc:public:cbdc_omg:04_doc:15_common:50_international:start| Return to Top]] |
| <table> | <table> | ||
| Line 95: | Line 102: | ||
| <figure TransactionSpeed> | <figure TransactionSpeed> | ||
| - | {{ :cbdc:private:cbdc_omg:04_doc:15_common:50_international:screen_shot_2022-05-15_at_6.32.42_pm.png?700 |}} | + | {{ :cbdc:public:cbdc_omg:04_doc:15_common:50_international:screen_shot_2022-05-15_at_6.32.42_pm.png?700 |}} |
| <caption>Cryptocurrencies Transactions Speeds compared to Visa and Paypal(( | <caption>Cryptocurrencies Transactions Speeds compared to Visa and Paypal(( | ||
| HowMuch.net, | HowMuch.net, | ||
| - | __ransactions Speeds: How Do Cryptocurrencies Stack Up To Visa or PayPal?__, | + | __Transactions Speeds: How Do Cryptocurrencies Stack Up To Visa or PayPal?__, |
| Accessed: 15 May 2022, | Accessed: 15 May 2022, | ||
| [[https://howmuch.net/articles/crypto-transaction-speeds-compared]] | [[https://howmuch.net/articles/crypto-transaction-speeds-compared]] | ||
| Line 134: | Line 141: | ||
| )) | )) | ||
| - | However, even though the U.S. Dollar is the //de facto// world currency, that it is partially because it is perceived as a neutral, unbiased, well-managed, and transparent commodity. If the CBDC were to change the rules to make it less well managed, neutral, unbiased, and transparent there will be serious challenges to the U.S. Dollar. Part of the explanation for Bitcoins' adoption was that transactions were perceived to be beyond the purview of the U.S. government, in specific, but other governments as well. | + | However, even though the U.S. Dollar is the //de facto// world currency, it is partially because it is perceived as a neutral, unbiased, well-managed, and transparent commodity. If the CBDC were to change the rules to make it less well-managed, neutral, unbiased, and transparent there will be serious challenges to the U.S. Dollar. Part of the explanation for Bitcoins' adoption was that transactions were perceived to be beyond the purview of the U.S. government, in specific, but other governments as well. |
| : // Despite trillions of dollars in foreign debt and continuous large deficit spending, the United States still holds global trust and confidence in its ability to pay its obligations. For this reason, the U.S. dollar remains the strongest world currency. It may continue to be the top global currency in the years to come.// | : // Despite trillions of dollars in foreign debt and continuous large deficit spending, the United States still holds global trust and confidence in its ability to pay its obligations. For this reason, the U.S. dollar remains the strongest world currency. It may continue to be the top global currency in the years to come.// | ||
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| )) | )) | ||
| - | Part of the reservation about the U.S. Dollar is also attributable to the Snowden revelation. See: [[cbdc:private:cbdc_omg:04_doc:15_common:50_international:30_sovern | Data Sovereignty]] and MacAskill and Dance.(( | + | Part of the reservation about the U.S. Dollar is also attributable to the Snowden revelation. See: [[cbdc:public:cbdc_omg:04_doc:15_common:50_international:30_sovern| Data Sovereignty]] and MacAskill and Dance.(( |
| Ewen MacAskill and Gabriel Dance, | Ewen MacAskill and Gabriel Dance, | ||
| The Guardian, | The Guardian, | ||
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| </WRAP> | | </WRAP> | | ||
| ^ B0052 ^ Prevent Financial money laundering crimes |<WRAP> | ^ B0052 ^ Prevent Financial money laundering crimes |<WRAP> | ||
| - | There is already a rich legal framework in place to cope with [[:cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:40_launder#us_laws_and_regulations | Money Laundering]] within the U.S.; many of these can help prevent money laundering across U.S. borders. One example is the [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.a_glossary:u:us_patriot_act_-_title_iii | US Patriot Act, Title III: Anti-money-laundering to prevent terrorism of 2001]], especially the | + | There is already a rich legal framework in place to cope with [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:40_launder#us_laws_and_regulations| Money Laundering]] within the U.S.; many of these can help prevent money laundering across U.S. borders. One example is the [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.a_glossary:u:us_patriot_act_-_title_iii | US Patriot Act, Title III: Anti-money-laundering to prevent terrorism of 2001]], especially the |
| : 1. The [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.a_glossary:u:us_patriot_act_-_title_iii#first_subtitle | First Subtitle]] deals primarily with strengthening banking rules against money laundering, especially on the international stage | : 1. The [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.a_glossary:u:us_patriot_act_-_title_iii#first_subtitle | First Subtitle]] deals primarily with strengthening banking rules against money laundering, especially on the international stage | ||
| : 2. The [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.a_glossary:u:us_patriot_act_-_title_iii#third_subsection | Third Subtitle]] deals with currency smuggling and counterfeiting, including quadrupling the maximum penalty for counterfeiting foreign currency. | : 2. The [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.a_glossary:u:us_patriot_act_-_title_iii#third_subsection | Third Subtitle]] deals with currency smuggling and counterfeiting, including quadrupling the maximum penalty for counterfeiting foreign currency. | ||
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| </WRAP> | | </WRAP> | | ||
| ^ P0004 ^ Protect consumer privacy |<WRAP> | ^ P0004 ^ Protect consumer privacy |<WRAP> | ||
| - | Internationally, a major method of protecting consumer privacy is referred to as [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:private:cbdc_omg:04_doc:15_common:50_international:20_local | Data Localization]]. This section includes examples from Russia, China, India, European Union, and Brazil. | + | Internationally, a major method of protecting consumer privacy is referred to as [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:public:cbdc_omg:04_doc:15_common:50_international:20_local | Data Localization]]. This section includes examples from Russia, China, India, European Union, and Brazil. |
| Data Localization policies classification (( | Data Localization policies classification (( | ||
| Line 221: | Line 228: | ||
| </WRAP> | | </WRAP> | | ||
| ^ P0005 ^ Protect against criminal activity | <WRAP> | ^ P0005 ^ Protect against criminal activity | <WRAP> | ||
| - | There is already a rich legal framework within the U.S. to protect against criminal activity, which includes international activities (see the [[:cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:start#details_of_national_security_considerations| Details of National Security Considerations]]). Many of these laws and regulations are already well established and operational on the international level. | + | There is already a rich legal framework within the U.S. to protect against criminal activity, which includes international activities (see the [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:start#details_of_national_security_considerations| Details of National Security Considerations]]). Many of these laws and regulations are already well established and operational on the international level. |
| Some examples: | Some examples: | ||
| Line 228: | Line 235: | ||
| ** Human Trafficking:** [[https://www.intelligence.senate.gov/laws/intelligence-reform-and-terrorism-prevention-act-2004 | Intelligence Reform and Terrorism Prevention Act of 2004]] The **Intelligence Reform and Terrorism Prevention Act, section 7202** established the Human Smuggling and Trafficking Center to achieve greater integration and overall effectiveness in the U.S. government's enforcement and other response efforts, and to work with foreign governments to address the separate but related issues of alien smuggling, trafficking in persons, and criminal support of clandestine terrorist travel. | ** Human Trafficking:** [[https://www.intelligence.senate.gov/laws/intelligence-reform-and-terrorism-prevention-act-2004 | Intelligence Reform and Terrorism Prevention Act of 2004]] The **Intelligence Reform and Terrorism Prevention Act, section 7202** established the Human Smuggling and Trafficking Center to achieve greater integration and overall effectiveness in the U.S. government's enforcement and other response efforts, and to work with foreign governments to address the separate but related issues of alien smuggling, trafficking in persons, and criminal support of clandestine terrorist travel. | ||
| - | ** Drug Trafficking:** [[https://www.law.cornell.edu/uscode/text/18/1952 | 18 U.S. Code § 1952 - Interstate and foreign travel or transportation in aid of racketeering enterprises ]] Five year maximum for traveling or using the mail or instruments of interstate commerce (telephone/**internet**) with intent to facilitate drug trafficking. | + | ** Drug Trafficking:** [[https://www.law.cornell.edu/uscode/text/18/1952 | 18 U.S. Code § 1952 - Interstate and foreign travel or transportation in aid of racketeering enterprises ]] Five years maximum for traveling or using the mail or instruments of interstate commerce (telephone/**internet**) with intent to facilitate drug trafficking. |
| </WRAP> | </WRAP> | ||
| Line 236: | Line 243: | ||
| |< 30% 20% 10% >| | |< 30% 20% 10% >| | ||
| ^ National Security Consideration ^ No. of Laws and Regulations | | ^ National Security Consideration ^ No. of Laws and Regulations | | ||
| - | ^ [[cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:10_human_traf | Human Trafficking ]] | 14 | | + | ^ [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:10_human_traf| Human Trafficking ]] | 14 | |
| - | ^ [[cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:20_drug_traf | Drug Trafficking ]] | 9 | | + | ^ [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:20_drug_traf| Drug Trafficking ]] | 9 | |
| - | ^ [[cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:30_corrupt | Corruption ]] | 10 | | + | ^ [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:30_corrupt| Corruption ]] | 10 | |
| - | ^ [[cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:40_launder | Money Laundering ]] | 11 | | + | ^ [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:40_launder| Money Laundering ]] | 11 | |
| ^ Total ^ **44** | | ^ Total ^ **44** | | ||
| </table> | </table> | ||
| Line 247: | Line 254: | ||
| </WRAP> | | </WRAP> | | ||
| ^ P0006 ^ Garner broad support from key stakeholders |<WRAP> | ^ P0006 ^ Garner broad support from key stakeholders |<WRAP> | ||
| - | See [[cbdc:private:cbdc_omg:04_doc:15_common:05_stakeholder:start]]. The primary international stakeholders in the CBDC effort are identified in [[cbdc:private:cbdc_omg:04_doc:15_common:05_stakeholder:start#non-us_federal_government_oversight_authorities | non-U.S. Federal Government Oversight Authorities]]. This is a minimum set and could include more countries and specific agencies within these countries. | + | See [[cbdc:public:cbdc_omg:04_doc:15_common:05_stakeholder:start]]. The primary international stakeholders in the CBDC effort are identified in [[cbdc:public:cbdc_omg:04_doc:15_common:05_stakeholder:start#non-us_federal_government_oversight_authorities| non-U.S. Federal Government Oversight Authorities]]. This is a minimum set and could include more countries and specific agencies within these countries. |
| </WRAP> | | </WRAP> | | ||
| ^ P0012 ^ The firms that operate interbank payment services are subject to federal supervision |<WRAP> | ^ P0012 ^ The firms that operate interbank payment services are subject to federal supervision |<WRAP> | ||
| - | This is highly dependent on the [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:start | Currency Model]] or mix of currency models chosen to implement the U.S. CBDC. | + | This is highly dependent on the [[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:start| Currency Model]] or mix of currency models chosen to implement the U.S. CBDC. |
| Existing intermediaries must already follow: | Existing intermediaries must already follow: | ||
| Line 261: | Line 268: | ||
| : 1. Deposit of illicit funds into the financial system | : 1. Deposit of illicit funds into the financial system | ||
| : 2. Transactions designed to conceal the illicit origin of the funds, known as “layering” | : 2. Transactions designed to conceal the illicit origin of the funds, known as “layering” | ||
| - | : 3. Use of laundered funds to acquire real estate, financial instruments or commercial investments | + | : 3. Use of laundered funds to acquire real estate, financial instruments, or commercial investments |
| U.S. Federal law requires a person to report cash transactions of more than \$10,000 by filing IRS Form 8300 PDF, Report of Cash Payments Over \$10,000 received in a Trade or Business. (( | U.S. Federal law requires a person to report cash transactions of more than \$10,000 by filing IRS Form 8300 PDF, Report of Cash Payments Over \$10,000 received in a Trade or Business. (( | ||
| Line 279: | Line 286: | ||
| </WRAP> | | </WRAP> | | ||
| ^ P0024 ^ CBDC would need to comply with the U.S. robust rules |<WRAP> | ^ P0024 ^ CBDC would need to comply with the U.S. robust rules |<WRAP> | ||
| - | Most of the international agrements have to do with detection and prevention of [[cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:start | National Security]] which is a broad, extensive topic that requires an understanding of the U.S. Laws and Regulations, as well as, international treaties and agreements. Within the context of the CBDC, criminal activity can be one or more of the following: | + | Most of the international agreements have to do with the detection and prevention of [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:start| National Security]] which is a broad, extensive topic that requires an understanding of the U.S. Laws and Regulations, as well as, international treaties and agreements. Within the context of the CBDC, criminal activity can be one or more of the following: |
| - | : 1. [[cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:10_human_traf | Human Trafficking]] | + | : 1. [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:10_human_traf| Human Trafficking]] |
| - | : 2. [[cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:20_drug_traf | Drug Trafficking]] | + | : 2. [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:20_drug_traf| Drug Trafficking]] |
| - | : 3. [[cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:30_corrupt | Corruption]] | + | : 3. [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:30_corrupt| Corruption]] |
| - | : 4. [[cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:40_launder | Money Laundering]] | + | : 4. [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:40_launder| Money Laundering]] |
| </WRAP> | | </WRAP> | | ||
| ^ P0028 ^ Require significant international coordination to address issues such as:<WRAP> | ^ P0028 ^ Require significant international coordination to address issues such as:<WRAP> | ||
| Line 310: | Line 317: | ||
| : 4. Legal Frameworks:** There are already legal frameworks in place to handle: | : 4. Legal Frameworks:** There are already legal frameworks in place to handle: | ||
| - | : a. [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:private:cbdc_omg:04_doc:15_common:45_privacy:start | National Privacy Considerations]] | + | : a. [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:public:cbdc_omg:04_doc:15_common:45_privacy:start | National Privacy Considerations]] |
| - | : b. [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:start | National Security Considerations]] | + | : b. [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:start | National Security Considerations]] |
| - | Although these frameworks were developed without a CBDC, they already //"comply with the United States are subject to robust rules"// and are continuously being reviewed, updated, and amended based on new information obtained from the field. As part of this process, these frameworks need to add to the existing frameworks rather than creating new frameworks. | + | Although these frameworks were developed without a CBDC, they already //"comply with the United States are subject to robust rules"// and are continuously being reviewed, updated, and amended based on new information obtained from the field. As part of this process, these frameworks need to add to the existing frameworks rather than create new frameworks. |
| : 5. Preventing Illicit Transactions:** There are two areas within the existing legal frameworks covering Illicit transactions: | : 5. Preventing Illicit Transactions:** There are two areas within the existing legal frameworks covering Illicit transactions: | ||
| - | : a. [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:40_launder | Money Laundering]] | + | : a. [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:40_launder | Money Laundering]] |
| - | : b. [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:30_corrupt | Corruption ]] | + | : b. [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:30_corrupt | Corruption ]] |
| Although these frameworks were developed without a CBDC, they already //"comply with the United States are subject to robust rules"// and are continuously being reviewed, updated, and amended based on new information obtained from the field. As part of this process, these frameworks need to add to the existing frameworks rather than create new frameworks. | Although these frameworks were developed without a CBDC, they already //"comply with the United States are subject to robust rules"// and are continuously being reviewed, updated, and amended based on new information obtained from the field. As part of this process, these frameworks need to add to the existing frameworks rather than create new frameworks. | ||
| Line 326: | Line 333: | ||
| ^ R0014 ^ **Risk** of not achieving an appropriate balance between safeguarding the privacy rights of consumers and affording the transparency necessary to deter criminal activity |<WRAP> | ^ R0014 ^ **Risk** of not achieving an appropriate balance between safeguarding the privacy rights of consumers and affording the transparency necessary to deter criminal activity |<WRAP> | ||
| This has to be accomplished understanding international treaties, laws and regulations on | This has to be accomplished understanding international treaties, laws and regulations on | ||
| - | : 1. [[cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:start | Criminal Activity]]. | + | : 1. [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:start| Criminal Activity]]. |
| - | : 2. [[cbdc:private:cbdc_omg:04_doc:15_common:50_international:10_residency | Data Residency ]] | + | : 2. [[cbdc:public:cbdc_omg:04_doc:15_common:50_international:10_residency| Data Residency ]] |
| - | : 3. [[:cbdc:private:cbdc_omg:04_doc:15_common:50_international:20_local | Data Localization]] | + | : 3. [[cbdc:public:cbdc_omg:04_doc:15_common:50_international:20_local| Data Localization]] |
| - | : 4. [[cbdc:private:cbdc_omg:04_doc:15_common:50_international:30_sovern | Data Sovereignty]] | + | : 4. [[cbdc:public:cbdc_omg:04_doc:15_common:50_international:30_sovern| Data Sovereignty]] |
| </WRAP> | | </WRAP> | | ||
| ^ D0002 ^ **Design** should allow the central bank to limit the amount of CBDC an end user could hold |<WRAP> | ^ D0002 ^ **Design** should allow the central bank to limit the amount of CBDC an end user could hold |<WRAP> | ||
| The U.S. CBDC would need to work within the confines of the individual country's laws and regulations on: | The U.S. CBDC would need to work within the confines of the individual country's laws and regulations on: | ||
| - | : 1. [[cbdc:private:cbdc_omg:04_doc:15_common:50_international:10_residency | Data Residency ]] | + | : 1. [[cbdc:public:cbdc_omg:04_doc:15_common:50_international:10_residency| Data Residency ]] |
| - | : 2. [[:cbdc:private:cbdc_omg:04_doc:15_common:50_international:20_local | Data Localization]] | + | : 2. [[cbdc:public:cbdc_omg:04_doc:15_common:50_international:20_local| Data Localization]] |
| - | : 3. [[:cbdc:private:cbdc_omg:04_doc:15_common:50_international:30_sovern | Data Sovereignty]] | + | : 3. [[cbdc:public:cbdc_omg:04_doc:15_common:50_international:30_sovern| Data Sovereignty]] |
| </WRAP> | | </WRAP> | | ||
| ^ D0003 ^ **Design** should allow a limit on the amount of CBDC an end user could accumulate over short periods |<WRAP> | ^ D0003 ^ **Design** should allow a limit on the amount of CBDC an end user could accumulate over short periods |<WRAP> | ||
| - | See: [[cbdc:private:cbdc_omg:04_doc:20_comments:dsn:q16:start]] | + | See: [[cbdc:public:cbdc_omg:04_doc:20_comments:dsn:q16:start]] |
| The U.S. CBDC would need to work within the confines of the individual country's laws and regulations on: | The U.S. CBDC would need to work within the confines of the individual country's laws and regulations on: | ||
| - | : 1. [[cbdc:private:cbdc_omg:04_doc:15_common:50_international:10_residency | Data Residency ]] | + | : 1. [[cbdc:public:cbdc_omg:04_doc:15_common:50_international:10_residency| Data Residency ]] |
| - | : 2. [[:cbdc:private:cbdc_omg:04_doc:15_common:50_international:20_local | Data Localization]] | + | : 2. [[cbdc:public:cbdc_omg:04_doc:15_common:50_international:20_local| Data Localization]] |
| - | : 3. [[cbdc:private:cbdc_omg:04_doc:15_common:50_international:30_sovern | Data Sovereignty]] | + | : 3. [[cbdc:public:cbdc_omg:04_doc:15_common:50_international:30_sovern| Data Sovereignty]] |
| </WRAP>| | </WRAP>| | ||
| ^ D0009 ^ **Design** should allow for significant foreign demand for CBDC, furthering complicate monetary policy implementation |<WRAP> | ^ D0009 ^ **Design** should allow for significant foreign demand for CBDC, furthering complicate monetary policy implementation |<WRAP> | ||
| - | This depends on the [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:start | Currency Model]] used for the CBDC. For | + | This depends on the [[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:start| Currency Model]] used for the CBDC. For |
| - | : 1. [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start | Digital Cash Model, it would follow all the same rules as the current physical Dollar models work today.]] | + | : 1. [[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start | Digital Cash Model, it would follow all the same rules as the current physical Dollar models work today.]] |
| </WRAP> | | </WRAP> | | ||
| ^ D0013 ^ **Design** should facilitate compliance with a robust set of rules already intended to combat <WRAP> | ^ D0013 ^ **Design** should facilitate compliance with a robust set of rules already intended to combat <WRAP> | ||
| Line 357: | Line 364: | ||
| Criminal Activity is a broad, extensive topic that requires an understanding of the U.S. Laws and Regulations as well as international treaties and agreements. Within the context of the CBDC, criminal activity can be one more of the following: | Criminal Activity is a broad, extensive topic that requires an understanding of the U.S. Laws and Regulations as well as international treaties and agreements. Within the context of the CBDC, criminal activity can be one more of the following: | ||
| - | : 1. [[cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:10_human_traf | Human Trafficking]] | + | : 1. [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:10_human_traf| Human Trafficking]] |
| - | : 2. [[cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:20_drug_traf | Drug Trafficking]] | + | : 2. [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:20_drug_traf| Drug Trafficking]] |
| - | : 3. [[cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:30_corrupt | Corruption]] | + | : 3. [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:30_corrupt| Corruption]] |
| - | : 4. [[cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:40_launder | Money Laundering]] | + | : 4. [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:40_launder| Money Laundering]] |
| Customer due diligence and record keeping need to take into account: | Customer due diligence and record keeping need to take into account: | ||
| - | : 1. [[cbdc:private:cbdc_omg:04_doc:15_common:50_international:10_residency | Data Residency ]] | + | : 1. [[cbdc:public:cbdc_omg:04_doc:15_common:50_international:10_residency| Data Residency ]] |
| - | : 2. [[:cbdc:private:cbdc_omg:04_doc:15_common:50_international:20_local | Data Localization]] | + | : 2. [[cbdc:public:cbdc_omg:04_doc:15_common:50_international:20_local| Data Localization]] |
| - | : 3. [[cbdc:private:cbdc_omg:04_doc:15_common:50_international:30_sovern | Data Sovereignty]] | + | : 3. [[cbdc:public:cbdc_omg:04_doc:15_common:50_international:30_sovern| Data Sovereignty]] |
| </WRAP>| | </WRAP>| | ||
| Line 389: | Line 396: | ||
| ^ D0017 ^ **Design** should include digital payments in areas suffering from large disruption, such as natural disasters | <WRAP> | ^ D0017 ^ **Design** should include digital payments in areas suffering from large disruption, such as natural disasters | <WRAP> | ||
| See: **''D0015''** | See: **''D0015''** | ||
| - | See: [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:private:cbdc_omg:04_doc:20_comments:dsn:q18]], List of Internet outages provided by Wikipedia. | + | See: [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:public:cbdc_omg:04_doc:20_comments:dsn:q18]], List of Internet outages provided by Wikipedia. |
| </WRAP>| | </WRAP>| | ||
| - | | **''B''** = [[cbdc:private:cbdc_omg:04_doc:12_summary:start#benefits| Benefit Considerations ]] ||| | + | | **''B''** = [[cbdc:public:cbdc_omg:04_doc:12_summary:start#benefits| Benefit Considerations ]] ||| |
| - | | **''P''** = [[cbdc:private:cbdc_omg:04_doc:12_summary:start#policy_considerations| Policy Considerations]] ||| | + | | **''P''** = [[cbdc:public:cbdc_omg:04_doc:12_summary:start#policy_considerations| Policy Considerations]] ||| |
| - | | **''R''** = [[cbdc:private:cbdc_omg:04_doc:12_summary:start#risks| Risk Considerations ]] ||| | + | | **''R''** = [[cbdc:public:cbdc_omg:04_doc:12_summary:start#risks| Risk Considerations ]] ||| |
| - | | **''D''** = [[cbdc:private:cbdc_omg:04_doc:12_summary:start#design| Design Considerations]] ||| | + | | **''D''** = [[cbdc:public:cbdc_omg:04_doc:12_summary:start#design| Design Considerations]] ||| |
| </table> | </table> | ||
cbdc/public/cbdc_omg/04_doc/15_common/50_international/start.1652665302.txt.gz · Last modified: 2022/05/15 21:41 by nick
