Central Bank Digital Currency Privacy

Quick Take

  • A common misconception about central bank digital currencies (CBDCs) is that privacy can’t exist while transacting, which makes many citizens anxious about general-purpose or retail CBDC. 
  • Through the EUROchain research network, the European System of Central Banks (ESCB) developed a proof of concept using anonymity vouchers to enable privacy for certain retail CBDC transactions in 2019. 
  • More recently, two McGill University researchers submitted a novel design proposal for a ‘Privacy-Hybrid CBDC’ to the Bank of Canada’s Model X Challenge.
A common misconception about central bank digital currencies (CBDCs) is that privacy can’t exist while transacting, which makes many citizens anxious about general-purpose or retail CBDC. In fact, transaction privacy is such a big factor for potential users that it was the top concern among respondents in the CBDC survey that the European Central Bank […]

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