BIS Reveals Key Technological Focus for Central Bank Digital Currencies in the Americas
Central banks in the Americas have come together to establish key technical priorities for the potential architecture of Central Bank Digital Currencies (CBDCs). The Consultative Group on Innovation and the Digital Economy (CGIDE) report serves as a valuable resource for countries exploring or implementing CBDC solutions.
Through a collaborative effort, central banks are outlining essential technological aspects for a future CGIDE proposal on a CBDC proof of concept. The proposal takes into account technical requirements such as interoperability, scalability, user-centric design, security, and data privacy.
It is important to note that the proposed CBDC architecture aims to address technological priorities and serves as a general reference for central banks involved in CBDC research or development. It does not represent a policy stance on CBDC design, issuance, adoption, or technical standards, as confirmed by CGIDE members and observers.
In its initial phase, the CGIDE technical task force (TTF) will primarily focus on programmability features related to clearing and settlement. The chosen technical requirements within each category, specifically related to these features, were determined through a survey among TTF members. Each central bank member selected technical requirements based on their policy objectives.
This announcement follows an update on Project Tourbillon, led by the Bank for International Settlements’ innovation hub, on November 29. Significant progress has been made in finding a balance between privacy and transparency in CBDCs. The final report from Project Tourbillon presents a nuanced strategy for handling privacy in CBDC transactions. The proposal suggests a system that enables users to make payments without revealing personal information to merchants or other parties involved.
For more information, you can read about Italy and South Korea central banks’ collaboration on CBDC or follow us on Google News.
