The Bank of Canada has published a staff analytical note exploring privacy for central bank digital currencies (CBDC). It also outlined the pros and cons of zero knowledge proofs.
The bulk of the succinct paper highlights the trade offs between privacy – which is seen as a public good – and the need for disclosure required by regulations. But it also explores several of the complexities involved. Specifically, a payment system includes multiple technologies, several players and different pieces of information. It compares the privacy features in these three dimensions.
In terms of the technologies, these might include a centralized system, distributed ledger technology (DLT), cards and offline devices used for storage, each with different privacy features.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
