Robert Z. Mahari*, Thomas Hardjono, and Alex Pentland
Edited by Julie K. Stahlhut and Kevin McDermott
Article | Aug. 29 2022
- Central bank digital currencies (CBDCs) provide an unprecedented opportunity to design digital money that is inherently resistant to money laundering and the financing of terrorism.
- Strong forms of digital identity enable the customer due diligence process to be largely automated and make it challenging for bad actors to use a CBDC.
- Ongoing algorithmic transaction monitoring and interoperable record keeping approaches can enable collaboration between financial institutions to better identify criminal behavior while balancing privacy and financial inclusion.
This MIT Science Policy Review article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons license, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons license and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this license, visit http://creativecommons.org/licenses/ by/4.0/.