BIS Launches Project Tourbillon, Spotlights the Capacity of CBDCs to Maintain User Privacy

The Bank for International Settlements ‘ (BIS) Innovation Hub Swiss Centre introduced Project Tourbillon The project's core aim is to highlight how CBDCs can maintain privacy in transactions.

This endeavor focuses on testing the idea of keeping payer identities anonymous while not extending that same confidentiality to the receiving parties.

In the report released by Project Tourbillon, different payment scenarios were explored, allowing users to make purchases without revealing personal information, not even to the merchant.

Nonetheless, the merchant's identity would be shared with their financial institution during the transaction, which helps in addressing concerns about tax evasion and illicit activities. The findings suggest that it's feasible to keep transactions confidential. CBDC s.

Project Tourbillon investigated both present-day and quantum-resistant blind signatures—a vital cryptographic element crucial for ensuring privacy now and in the future. It showed that quantum-safe cryptography can be integrated, but also pointed out the requirement for specialized know-how, as well as possible challenges in transaction speed that require ongoing research for improvements.

"Ensuring privacy is a paramount user demand yet poses significant challenges to address. The main challenge is to provide robust technological privacy solutions without merely making promises, while also preventing potential misuse,\" stated Thomas Moser, Alternate Member of the Governing Board at the Swiss National Bank, in a written statement.

Privacy Remains a High Priority for the European Central Bank

Project Tourbillon marks an initial effort to evaluate privacy, security, and scalability in CBDC design facilitated by the BIS. It involved developing two scalable prototypes capable of managing an increasing volume of transactions.

As countries around the world consider launching their own digital currencies, the issue of privacy has emerged as a prominent public concern. When developing the digital euro, the Eurosystem has placed a high premium on privacy as an essential feature for both citizens and professionals alike. In the Eurosystem's report stemming from the public consultation regarding a digital euro, privacy emerges as one of the pivotal attributes essential for a digital euro, especially among various professional groups.

These groups include consumer advocacy organizations and trade unions, along with NGOs and other professionals within the banking sector. European Central Bank Please be aware that the content provided on this page should not be construed as legal, tax, investment, financial, or any other kind of advice. It's crucial to only invest what you can afford to lose and to consult independent financial advisors if you have questions. For more detailed information, we recommend reviewing the terms and conditions as well as the help and support sections offered by the issuer or advertiser. Metaverse Post aims for precise and impartial reporting; however, market conditions can shift without prior notice.

According to the “ Alisa, a committed journalist at Metaverse Post, focuses on cryptocurrency, zero-knowledge proofs, investments, and the vast arena of Web3. With a sharp eye on emerging trends and technologies, she provides thorough insights to keep readers informed and engaged in the dynamic world of digital finance. Cryptocurrencylistings.com Launches CandyDrop To Simplify the Way Users Acquire Crypto and Boost Engagement with Quality Projects

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