The Bank for International Settlements prepared a CBDC report, based on Project Tourbillon, the initiative for a private digital currency.
The Bank for International Settlements (BIS) has released a CBDC report on Project Tourbillon, a private CBDC framework. The latest report specifies how users can maintain anonymity while paying merchants using CBDCs. The Bank for International Settlements prepared the framework of two prototypes with inspiration from the eCash design of cryptography expert David Chaum.
The two prototypes are called eCash 1.0 and eCash 2.0, which would help distinguish the three main features of the framework. The features of Project Tourbillon include privacy for users, security via cryptography, and scalability for higher transactions.
The CBDC report said, “Project Tourbillon shows that it is feasible to implement a design that provides payer anonymity. The project demonstrated that both prototypes are scalable and can handle a growing number of transactions. It also demonstrated that quantum-safe blind signatures, a cryptographic technique used to ensure anonymity, can be implemented.”
The report specified how the implementation of such features wasn’t easy. It stated that the project is the first to ensure all the above features in an eCash CBDC design. It also touched upon future scope areas, including viability issues, developing quantum-safe cryptography, and enhancing the design.
BIS’ report has proved how CBDC consumers can maintain their privacy with all stakeholders. It includes banks, merchants, and even a central bank. The payers would know the merchants, while their identities would reveal to the merchants’ banks during the payments. The report is a significant step in the progress of CBDC adoption through essential privacy and security frameworks and the other features.
The BIS announced Project Tourbillon back in February 2023 as part of its current year’s initiatives.
Follow Millionero and learn about the crypto industry’s latest updates!