In no way inhibits the conduct of monetary policy?

Paper cash is central bank money too. But without an electronic payment rail, it’s usefulness is capped. But digital cash with a central bank issuer… that’s useful for everything except black market trade. It’s hard to see how the Fed could both maintain the parity peg and not see the “Fedcoin” line-item on its balance sheet swell. Banks would have to offer depositors a credit spread over the “Fedcoin rate” to prevent a run.

So, the introduction of Fedcoin would place the Fed in a dilemma. If it rations the supply of Fedcoin, Fedcoin will trade at a premium to bank depo and the peg breaks on a spot basis. But if you make banks compete with the Fedcoin rate for bank deposits and enforce parity (you can depo/withdrawal Fedcoin at your bank 1:1), then the Fedcoin rate is going to be determined more by the demand for Fedcoin relative to bank depo than macroeconomic considerations and, anyway, the peg breaks on a forward basis.