“The Federal Reserve Bank of New York’s Innovation Center has recently concluded a 12-week experiment in cahoots with banking behemoths such as Citigroup Inc. and Wells Fargo & Co. The study focused on regulated liability networks, with an aim to test the efficiency of digital dollars in the financial sector

The study, as reported by Bloomberg, employed a permissioned private blockchain to simulate the issuance and settlement of digital currency, representing customer deposits. The very use of a private blockchain rings alarm bells, as it could allow the central bank, and potentially other financial entities, to have an unprecedented level of control and surveillance over individual transactions.”