Digital Dollar Development Stirs Transaction-Tracking Tensions

The future of a US digital dollar will likely hinge on protecting privacy while tracking transactions, as efforts continue to make virtual payments as simple as handing over a $20 bill.

While the US government weighs whether to launch a central bank-backed virtual currency, civil liberties advocates and libertarians are pushing for a digital dollar that’s shielded from surveillance and offers similar anonymity to cash.

Interest in a digital dollar is fueled in part by the advent of alternatives like cryptocurrencies and the coronavirus pandemic-driven shift toward more cashless transactions. Paving the way for a central bank digital currency in ...