The Bank for International Settlements (BIS) Innovation Hub has released its final report on Project Tourbillon, an initiative focused on developing a “private CBDC” (central bank digital currency). The report explores the concepts of privacy, security, and scalability through the use of two prototypes called eCash 1.0 and eCash 2.0. These prototypes, based on the designs of cryptography pioneer David Chaum, aim to provide payment anonymity for CBDC transactions.The report highlights that it is possible to implement a CBDC that ensures payer anonymity while also combating illicit transactions. In this scheme, a consumer using CBDCs to pay a merchant remains anonymous to all parties involved, including the merchant, banks, and the central bank. The merchant’s identity is only disclosed to their bank as part of the payment process. While the central bank does not have access to personal payment data, it can monitor the circulation of CBDCs at an aggregate level.However, before using the CBDC, all users must undergo a Know Your Customer (KYC) procedure at a commercial bank. The responsibility for ensuring compliance with regulatory requirements such as anti-money laundering (AML), countering the financing of terrorism (CFT), and combating tax evasion lies with the merchant’s bank, similar to the current financial system.The report concludes that Tourbillon’s payment process can be easily integrated into the existing payment landscape as it leverages technologies like QR codes, proof-of-stake (PoS) protocols, and account relationships between customers, merchants, banks, and central banks.The BIS is actively promoting the adoption of CBDCs globally. It is assisting the Swiss National Bank in the development of wholesale CBDCs and collaborating on joint platforms with central banks of China, Hong Kong, Thailand, and the UAE. Additionally, the BIS is working on a proof-of-concept for a transaction tracker with the European Central Bank and other projects.Overall, the report highlights the potential for implementing a CBDC that ensures payment anonymity while addressing regulatory requirements. The use of existing technologies and integration into the current payment landscape make the Tourbillon project a promising development in the world of CBDCs.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇨🇠🇨🇳 ðŸ‡ðŸ‡° 🇹🇠|
| Sentiment | neutral |
| Relevance Score | 1 |
| People | David Chaum |
| Companies | Bank for International Settlements (BIS), Hong Kong, Swiss National Bank, and the UAE, European Central Bank, Thailand, central banks of China |
| Currencies | None |
| Securities | None |
