Central Bank Digital Currency Design Choices and Effect on Law Enforcement

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

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.

Santa Monica, CA" RAND, 2025. 51p.