The First End User (Person, Corporation, Institution, a Computer process, etc.) goes into an Existing Intermediary and wants to transfer money to a Second End User.

The First Existing Intermediary uses the newly U.S. CBDC Application Programming Interface (API) to start the transaction. The First Existing Intermediary asks if the money is to be transferred immediately requiring U.S. CBDC or if it will just be done using U.S. Dollars.

The First End User responds that they will be using U.S. Dollars.

A transaction is created that meets the requirements of the ACH is formulated.

The ACH Transaction is placed onto the existing ACH Network and routed to the appropriate Second Existing Intermediary.

The Second Existing Intermediary receives the transaction and waits for the transaction to settle (usually within 24 hours).

The Second Existing Intermediary places the money designated in the transfer transaction to the Second End User's bank account (i.e., debit, credit, checking, savings, Credit Card account, etc.)

The Second End User possesses the money.

The First End User (Person, Corporation, Institution, a Computer process, etc.) goes into an Existing Intermediary and wants to transfer money to a Second End User.

The First Existing Intermediary uses the newly U.S. CBDC Application Programming Interface (API) to start the transaction. The First Existing Intermediary asks if the money is to be transferred immediately requiring U.S. CBDC or if it will just be done using U.S. Dollars.

The First End User responds that they will be using U.S. CBDC.

The First Existing Intermediary verifies that the First End User has the correct amount of U.S. CBDC to complete the transaction. If Not, the First End User can convert some existing U.S. Dollars to U.S. CBDC to complete the transaction.

A transaction is created that meets the requirements of the U.S. CBDC is formulated.

The U.S. CBDC Transaction is placed onto the new U.S. CBDC Network and routed to the appropriate Second Existing Intermediary.

The Second Existing Intermediary receives the U.S. CBDC transaction after the transaction is been validated and verified by the U.S. CBDC Consensus Algorithm.

The Second End User possesses the money.

The proposed Dual ACH/CBDC networks would do exactly that. The existing Intermediaries would be allowed to expand their services to include U.S. CBDC by basically making it as a consumer choice.

The proposed Dual ACH/CBDC networks would still place the burden on protecting the privacy of the End-User on the existing and new intermediaries. The intermediaries would be subject to reviews and audits.

The proposed Dual ACH/CBDC networks would still place the burden on protecting the national security on the existing and new intermediaries. The intermediaries would be subject to reviews and audits.

In all accounts, U.S. money could be kept as U.S. Dollars or as U.S. CBDC. Since the U.S. CBDC would probably be backed by a U.S. Dollar Stablecoin, there should be no advantage or disadvantage to either. The main difference is the End User's choice to use the real-time CBDC or the existing ACH Network. Note: There may be a cost associated with converting between the two currencies.

Entrepreneurs would be able to create new Intermediaries that only used the U.S. CBDC Payment Network. This might not require bricks and mortar establishments and might work completely in a virtual environment.

If the U.S. CBDC network is selected by the End User, the transactions will most likely be faster, but not necessarily cheaper. There is a cost associated with using the Consensus facilities of the U.S. CBDC as well as the possibility of costs associated with converting U.S. Dollars to U.S. CBDC.

Using the Dual Network, the End User can decide how fast they want the payments to be made. The cost of using a U.S. CBDC is still unknown. There is a cost associated with using the Consensus facilities of the U.S. CBDC as well as the possibility of costs associated with converting U.S. Dollars to U.S. CBDC.

Also see B0008.It is up to the free market and the entrepreneurs to make it more convenient and more accessible.

Currently, most existing Intermediaries offer online banking addressing this already. However, some transactions may require a “person-in-the-middle” to complete. The U.S. CBDC would still require these “person-in-the-middle” for some kinds of transactions.

If an End User chooses to use the U.S. CBDC network, the funds will be available as fast as the U.S. CBDC infrastructure permits. Usually within minutes. See Consensus Algorithms for more information.

Using the Dual Network Model for payment transfers should fulfill all these desirements.

NOTE: These new financial intermediaries would NOT be released from following the existing Laws and Regulations of the traditional financial intermediaries. In other words, they would have to ensure the End User's privacy (both ends of the Payment Transactions. They would also have conform to all the National Security Laws and Regulations. If either End User in the Payment Transaction is not in the U.S., they would have to abide by all the International Laws and Regulations. This would mean these new Intermediaries would be subject to oversight and auditing.

If the U.S. CBDC Payment network is selected by the End User, the transactions will happen as fast as the U.S. CBDC Infrastructure permits. See Consensus Algorithms for more information.

The Dual ACH Network and U.S. CBDC Networks presented provides a bridge between the two networks. In order to be used effectively, the use of a standardized Application Programmer Interface (API) is also recommended.

Note: The API could be in the form of Web Services, Remote Procedure Calls (RPC), Common Object Request Broker Architecture (CORBA), Data Distribution Service (DDS) or other interprocess communication mechanisms defined using ISO/OMG Interface Definition Language (IDL), standardized Web Services Interface Language (WSDL), etc.

The Dual ACH Network and U.S. CBDC Networks maintain the U.S. Dollar as the legal tender for both payment networks. The ACH Network continues to use the U.S. Dollar as it currently does. The U.S. CBDC would use a U.S. Dollar backed Stablecoin.

See B0009 above.

See B0009 above.

The Internal Revenue Service (IRS) would be required to support the ACH/CBDC API and Bridge to make this happen. It is beyond the control of the Federal Reserve.

This would require the employers, the U.S. Benefits agencies, and the Internal Revenue Service (IRS) to support the ACH/CBDC API and Bridge to make this happen.

At this point in time, it can only be conjectured that the transaction costs would be less. Often it is assumed that the Privacy and Security laws and regulations can be skipped when using a U.S. CBDC. This will most likely not happen. If the U.S. CBDC uses a Stablecoin, the cost is highly dependent on the Platform chosen. See: Consensus Algorithms

The Dual ACH/CBDC network model would require all Intermediaries to collect the same kind of data on all transactions providing one degree of freedom between the End Users and the Government.

Currently, the Intermediaries operate in an open market that is confined by the Laws and Regulations of the U.S. and Foreign governments when applicable.

The proposed Dual ACH/CBDC networks would allow the existing Intermediaries to participate in the CBDC services as long as they are compliant with the standardized Application Programmer Interface (API) and Bridge.

The proposed Dual ACH/CBDC networks would also allow new Intermediaries to only offer CBDC services.

As long as the Intermediaries use the standardized Application Programmer Interface (API) and Bridge, all transfers between Intermediaries is possible.

See B0022 above.

See B0007 and B0024 above.

See B0026, P0021, and B0045 above.

At a minimum, the existing Intermediaries would be able to use most of their existing infrastructure to use the U.S. CBDC. In the Workflow for creating a payment transaction:

1. Need to ask if it is going to use a CBDC transfer.

a. If yes, they need to make sure the End Users account has the correct about of CBDC Stablecoins

i. If not, they need to convert U.S. Dollars to U.S. CBDC Stablecoins

ii. formulate a standardized U.S. CBDC transaction and all the required data

b. If not, do ACH Network business as usual

This is highly dependent on the DIDO Platform selected for the U.S. CBDC and the Consensus Algorithm selected.

In the Dual ACH/CBDC network the risk should remain the same as it is under just the ACH Network.

Assuming that the current balance is acceptable, using the Dual Network Model for payment transfers would keep in place all existing Privacy and Security Laws and Regulations. The new Intermediaries would have to follow the same rules as the existing Intermediaries.

NOTE: These new financial intermediaries would NOT be released from following the existing Laws and Regulations of the traditional financial intermediaries. In other words, they would have to ensure the End User's privacy (both ends of the Payment Transactions. They would also have conform to all the National Security Laws and Regulations. If either End User in the Payment Transaction is not in the U.S., they would have to abide by all the International Laws and Regulations. This would mean these new Intermediaries would be subject to oversight and auditing.

The Dual ACH/CBDC Network models should extend the current structure of the U.S. financial system and provide more potential Intermediaries. The more Intermediaries, the more robust the system should become.

In the Dual ACH/CBDC Network model, U.S. Dollars in accounts or U.S. CBDC would still be treated as transfers. See the answer to Question: 13. How could a CBDC be designed to foster operational and cyber resiliency? What operational or cyber risks might be unavoidable?.

Using the Dual ACH/CBDC Transaction Network, the U.S. CBDC should be treated exactly the same way as U.S. Dollars. The Intermediary accounts would have to segment the accounts into those that contain U.S. Dollars and those that contain U.S. CBDC if the End User wants to avail themselves of the new U.S. CBDC network.

See B0004, B0024, B0047, and R0014 above.

See B0005 and R0011 above.

The proposed Dual ACH/CBDC networks would do exactly that. The existing Intermediaries would be allowed to expand their services to include U.S. CBDC by basically making it a consumer choice.

The proposed Dual ACH/CBDC networks would still place the burden on protecting the privacy of the End-User on the existing and new intermediaries. The intermediaries would be subject to reviews and audits.

The proposed Dual ACH/CBDC networks would still place the burden on protecting the national security on the existing and new intermediaries. The intermediaries would be subject to reviews and audits.

The Dual ACH/CBDC Networks would require the new infrastructure for the Application Programmer Interface (API), the bridges, and the building out of a Distributed Network of Nodes to handle the CBDC transactions and Consensus. The network of nodes might have any number of node types. Figure 3 describes the taxonomy of DIDO Node Types. See OMG DID-RA Node Taxonomy for a discussion on the different kinds of nodes.