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Todd R. Kornfeld, of counsel in the Financial Services Practice Group of Pepper Hamilton, was quoted in the February 11, 2020 Computerworld article, "Why the Fed Is Considering a Cash-backed Cryptocurrency."
Todd Kornfeld, attorney in the law firm of Pepper Hamilton LLP and part of its Blockchain Practice, said the Fed may indeed be looking at private-side token development and concluding there are advantages to creating a standardized CBDC with the right framework around.
For one, a CBDC would allow banks to tie funds to an owner in a way stored currency value today cannot, Kornfeld said.
"In the US…, you have a bank account and so much money according to bank's ledger. [You] can't say that's my dollar," Kornfeld said. "I think maybe they're looking now and saying that we've thought about it more and there are things we could do that may make sense and maybe we should formally tokenize U.S. currency. I think this is in the early stages."
"In some sense, you can look at the FedNow and the clearing houses with similar products and…they're using similar techniques and apps to try to move the U.S. dollars around faster. The banks have been constrained because the existing bank-to-bank transfer system has been slow," Kornfeld said.