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Compliance Design Options for Offline CBDCs: Balancing Privacy and AML/CFT (IEEE)
Compliance Design Options for Offline CBDCs: Balancing Privacy and AML/CFT (IEEE)
The Institute of Electrical and Electronics Engineers (IEEE) published a paper that examines the design options for offline central bank digital currency (CBDC) that balance user privacy with anti-money laundering and counter-terrorism financing (AML/CFT) compliance requirements. The paper presents a compliance-by-design framework for evaluating technologies that can enable CBDC transactions without network connectivity while maintaining regulatory oversight. It classifies privacy design options and corresponding technical building blocks for offline CBDCs, along with their impact on AML/CFT measures, and outlines commonalities and differences between offline and online solutions. As such, it provides a conceptual framework for further techno-legal assessments and implementations. The paper finds that offline CBDC functionality introduces additional degrees of freedom for privacy design compared to purely online systems, with the highest privacy options limiting AML/CFT compliance to basic transaction thresholds and identity verification, while lower privacy models enable sophisticated monitoring including transaction screening, sanctions checks, and graph analysis. [Source: IEEE]
#CBDC#Privacy#AMLCFT#Offline#Fintech#DFC
·ieeexplore.ieee.org·
Compliance Design Options for Offline CBDCs: Balancing Privacy and AML/CFT (IEEE)
CBRT and CBUAE Sign MoUs to Exchange CBDC Expertise and Facilitate Cross-Border Payments (CBRT)
CBRT and CBUAE Sign MoUs to Exchange CBDC Expertise and Facilitate Cross-Border Payments (CBRT)
The Central Bank of the Republic of Türkiye (CBRT) and the Central Bank of the United Arab Emirates (CBUAE) signed a memorandums of understanding (MoU) on the exchange of expertise in developing central bank digital currency (CBDC) platforms for individuals and institutions. Additionally, the MoU outlines the integration of the Türkiye’s FAST system with UAE’s instant payment platform (Aani) to enhance the efficiency of cross-border financial transactions. This includes linking electronic systems and switches in both countries to improve interoperability and operational effectiveness. [Source: CBRT]
#Turkey#UAE#CrossBorder#Payments#CBDC#DFC#FastPayments#Interlinking
·tcmb.gov.tr·
CBRT and CBUAE Sign MoUs to Exchange CBDC Expertise and Facilitate Cross-Border Payments (CBRT)
ECB Selects Digital Euro Service Providers (ECB)
ECB Selects Digital Euro Service Providers (ECB)
The European Central Bank (ECB) has selected service providers for five key components of the digital euro project, following a call for applications and tender process. However, the actual development of components will only proceed pending adoption of the Digital Euro Regulation and further ECB Governing Council decisions. No payments have been made yet, and the agreements include safeguards to adapt to possible legislative changes. Framework agreements have been signed for: (i) alias lookup (Sapient and Tremend Software Consulting), (ii) risk and fraud management (Feedzai), (iii) app and software development kit (SDK) development (Almaviva and Fabrick), (iv) offline payment solutions (Giesecke+Devrient), and (v) secure exchange of payment information (Senacor). Service requests will initially be directed to the above providers, but second-ranked providers may be approached if required (see press release for full list). [Source: ECB]
#CBDC#Fintech#Eurozone#ECB#DFC
·ecb.europa.eu·
ECB Selects Digital Euro Service Providers (ECB)
Provisional Digital Euro Legislative Roadmap (LinkedIn]
Provisional Digital Euro Legislative Roadmap (LinkedIn]
Fernando Navarrete, the rapporteur responsible for shepherding the digital euro legislation through the European Parliament, posted the likely milestones. The report proposal is scheduled for publication during the last week of October 2025, and presented to the Committee on Economy and Monetary Affairs (ECON) on November 5/6. December 12 will be the deadline for submitting amendments that ECON will debate on January 28/29, 2026. That will be followed by negotiation meetings between political groups from January to April 2026, and then (provisionally) an ECON vote in May 2026. That will be followed by negotiations between the European Parliament, Council (of European Union finance ministers), and Commission to converge on a final, unified legislative framework for the digital euro. [Source: LinkedIn]
#CBDC#ECB#Eurozone#Fintech#DFC
·linkedin.com·
Provisional Digital Euro Legislative Roadmap (LinkedIn]
Make the Digital Euro Work for Merchants to Ensure it Meets its True Potential (IRE)
Make the Digital Euro Work for Merchants to Ensure it Meets its True Potential (IRE)
Independent Retail Europe (IRE), part of the Merchant Payments Coalition Europe, urged European policymakers to ensure the digital euro is designed to benefit merchants as well as consumers. The coalition argues for a simple, uniform transaction fee capped at 4 cents, allowing merchants to incentivize adoption and keep payment costs low, and for digital euro transactions to be accessible both online and offline without added complexity. They recommend prioritizing in-store and e-commerce payments over person-to-person use, enabling merchants to hold and use digital euros for supplier payments, and building a single, standardized European payments infrastructure to foster competition and integration. The statement emphasizes that the digital euro's potential for innovation, cost reduction, and resilience depends on transparent, inclusive, and merchant-focused legislative and technical decisions. [Source: IRE]
#CBDC#Eurozone#Payments#Fintech#ECB#DFC
·independentretaileurope.eu·
Make the Digital Euro Work for Merchants to Ensure it Meets its True Potential (IRE)
EU Finance Ministers Reach Agreement on Digital Euro Next Steps (European Commission and European Council)
EU Finance Ministers Reach Agreement on Digital Euro Next Steps (European Commission and European Council)

European Central Bank (ECB) President Christine Lagarde and European Commissioner Valdis Dombrovskis reached an agreement on the next steps for the digital euro, at a meeting of European Union (EU) finance ministers (the "European Council") on September 18-19, 2025. Dombrovskis noted that, while progress has been slow but steady over the past two years, there is now increased urgency to resolve open issues and reach political consensus. He noted that a political agreement on the institutional framework for setting holding limits had been reached, ensuring that both the Council and the ECB have a role, which injects fresh momentum toward reaching a common approach by end-2025. Paschal Donohoe, the President of the Eurogroup of Eurozone finance ministers, confirmed that ongoing legal drafting will continue under the Council Presidency, with further presentations to ministers expected. [Source: European Commission and European Council] https://www.consilium.europa.eu/en/press/press-releases/2025/09/19/remarks-by-paschal-donohoe-following-the-eurogroup-meeting-of-19-september-2025/

#Eurozone#CBDC#DFC#Fintech#ECB
·ec.europa.eu·
EU Finance Ministers Reach Agreement on Digital Euro Next Steps (European Commission and European Council)
e-CNY International Operation Center Officially Launched in Shanghai (PBOC)
e-CNY International Operation Center Officially Launched in Shanghai (PBOC)
The People's Bank of China (PBOC) officially launched the e-CNY International Operation Center in Shanghai, introducing three key business platforms: the Cross-Border Digital Payment Platform, the Blockchain Service Platform, and the Digital Asset Platform. This initiative aims to bolster cross-border connectivity and showcase Shanghai's role as an international financial center. The center, managed by the Digital Currency Institute of the PBOC, is tasked with building and operating infrastructure supporting e-CNY's international use and fostering digital financial innovation. [Source: PBOC]
#CBDC#China#Fintech#CrossBorder#Payments#DFC
·pbc.gov.cn·
e-CNY International Operation Center Officially Launched in Shanghai (PBOC)
Digital Euro Innovation Platform Outcome Report: Pioneers and Visionaries Workstreams (ECB)
Digital Euro Innovation Platform Outcome Report: Pioneers and Visionaries Workstreams (ECB)
The European Central Bank (ECB) published a report on the digital euro innovation platform, established in October 2024 to foster collaboration with diverse stakeholders. The platform included “pioneers” (focused on technical trials) and “visionaries” (exploring long-term innovation). Visionaries proposed features such as integrated electronic receipts, pay-on-delivery systems, AI-powered wallets, and inclusive payment interfaces, emphasizing privacy and accessibility. Pioneers verified the technical feasibility of conditional payments, demonstrating how reservation-of-funds infrastructure could unlock advances in e-commerce, transport, public services, and business payments. Due to broad engagement and interest, the ECB will initiate a second round of experimentation in early 2026 to maximize further innovation and collaboration. [Source: ECB]
#ECB#Eurozone#CBDC#Fintech#DFC
·ecb.europa.eu·
Digital Euro Innovation Platform Outcome Report: Pioneers and Visionaries Workstreams (ECB)
Digital Euro May Be Rolled Out in Mid-2029, ECB’s Cipollone Says (Bloomberg)
Digital Euro May Be Rolled Out in Mid-2029, ECB’s Cipollone Says (Bloomberg)
The digital euro could be launched by mid-2029, according to ECB Executive Board member Piero Cipollone, speaking at a Bloomberg Future of Finance event. A recent agreement among euro-area finance chiefs on customer holding limits has accelerated the project’s momentum, but the initiative’s progress now depends on the European Parliament passing required legislation. Cipollone suggests that the Parliament’s formal position may be ready by early May 2026, with broader agreement among EU member states likely by year-end. [Source: Bloomberg]
#CBDC#ECB#Eurozone#Fintech#DFC
·bloomberg.com·
Digital Euro May Be Rolled Out in Mid-2029, ECB’s Cipollone Says (Bloomberg)
Pakistan Begins Trial of National Digital Currency (LCCI)
Pakistan Begins Trial of National Digital Currency (LCCI)
Accoording to Lahore Commercial Companies Index (LCCI) the State Bank of Pakistan has reportedly started trials of its central bank digital currency (CBDC). It will accessed via a mobile wallet app, allowing users to make instant payments with QR codes, register using their national identity card, transfer funds through phone numbers, and pay government fees directly. The initiative is designed to enhance regulatory oversight, and reduce fraud risks. [Source: LCCI]
#CBDC#Pakistan#Fintech#DFC
·lcci.pk·
Pakistan Begins Trial of National Digital Currency (LCCI)
The digital euro has enraged half of Brussels
The digital euro has enraged half of Brussels
Politico published an article about how the European Central Bank (ECB) push for a digital euro is provoking controversy across Brussels, especially among banks and right-leaning politicians. The legislative process, led by skeptical European Union (EU) lawmaker Fernando Navarrete, is mired in political debate: privacy advocates demand strong safeguards, some governments insist on offline use. Another ongoing debate is whether banks should be paid for distributing digital euros and ensuring their payment rails accept and profit from digital euro transactions. Also the lEuropean Parliament will have to work with the Council of the European Union, which represents member countries whose ministers are being lobbied by their respective banking industries. The final legislative framework likely won’t be ready before May 2026, so practical rollout is unlikely before 2028. [Source: Politico]
#CBDC#Eurozone#ECB#Fintech#DFC
·politico.eu·
The digital euro has enraged half of Brussels
Wholesale Central Bank Money in the Context of Technological Innovation (BIS)
Wholesale Central Bank Money in the Context of Technological Innovation (BIS)
The Bank for International Settlements (BIS) published a report, produced by a group of seven major central banks, that examines the implications of technological innovation—especially distributed ledger technology (DLT) and tokenization—for wholesale central bank money (CBM) and settlement systems. The report finds that while wholesale CBM has existed for decades in the form of reserves, “wholesale CBM tokens” represent a new technical form enabling programmability and composability, but their fundamental economic function remains unchanged. The report lays out options and trade-offs for central banks, including whether to support private settlement solutions, enhance existing systems, or build new infrastructures—potentially with integration of multiple assets/tokens. While technological advances like DLT could improve efficiency, interoperability, and resilience, the report stresses that choices will differ by jurisdiction and caution is needed to avoid liquidity fragmentation, loss of central bank oversight, and inefficient duplication. Ultimately, central banks must balance innovation, risk management, and policy objectives when considering whether and how to make central bank money available for the settlement of tokenized wholesale transactions, with international cooperation seen as important for navigating trade-offs and possible next steps. [Source: BIS]
#Fintech#CBDC#wCBDC#Tokenization#DFC
·bis.org·
Wholesale Central Bank Money in the Context of Technological Innovation (BIS)
Revisiting National, Economic, and Monetary Sovereignty (SSRN)
Revisiting National, Economic, and Monetary Sovereignty (SSRN)
In a paper posted on SSRN, Ulrich Bindseil (ex-ECB) and Richard Senner (Swiss National Bank) examine national, economic, and monetary sovereignty, defining sovereignty as the ability of a community to make and implement collective decisions in its people's interest. They argue that sovereignty remains highly relevant despite challenges from globalization, digitalization, and international organizations, as states retain fundamental legislative and enforcement powers, particularly over legal frameworks governing money and finance. They distinguish between domestic sovereignty (freedom from internal impairments like corruption or institutional weakness) and international sovereignty (ability to manage cross-border relations and exclude external interference). The paper gives special attention to monetary sovereignty, which encompasses the state's capacity to regulate currency, conduct monetary policy, and organize payment systems. Drawing on historical analysis from Bodin through Knapp's State Theory of Money, the authors demonstrate that money is fundamentally a legal construct requiring state involvement, while acknowledging ongoing debates between those favoring stronger public roles (progressives) versus market-based solutions (libertarians). They conclude that effective monetary sovereignty—understood normatively as serving societal welfare rather than maximizing state power—requires nations to actively address challenges like payment system dominance by foreign firms, crypto-assets facilitating illicit transactions, and the balance between central bank independence and democratic accountability. [Source: SSRN]
#Sovereignty#Fintech#CBDC
·papers.ssrn.com·
Revisiting National, Economic, and Monetary Sovereignty (SSRN)
Chilean Central Bank to Start CBDC Proof-of-Concept Work (BCCh)
Chilean Central Bank to Start CBDC Proof-of-Concept Work (BCCh)

[August 5, 2025] The Central Bank of Chile (BCCh) published its annual payment systems report in which it announced that it will develop a proof-of-concept (POC) to study the technology behind a central bank digital currency (CBDC) by the end of 2025. The POC will involve controlled testing and simulated transactions in which the BCCh will be the sole participant. The BCCh began its CBDC work in 2021, and in March 2024 it published a report in which it gave an account of lessons learned from different stakeholders. [Source: BCCh]

#Chile#Fintech#CBDC#DFC
·bcentral.cl·
Chilean Central Bank to Start CBDC Proof-of-Concept Work (BCCh)
Bolivian Central Bank to Publish CBDC White Paper (Vision360)
Bolivian Central Bank to Publish CBDC White Paper (Vision360)
Banco Central de Bolivia (BCB) reportedly will publish a white paper on a prospective digital boliviano central bank digital currency (CBDC) by the end of September 2025. Motivations for this investigation include modernizing the domestic payment systems and facilitating cross-border transactions. While the BCB is late to the game, central bank officials emphasize that they have completed the necessary groundwork. [Source: Vision360]
#Bolivia#CBDC#Fintech#DFC
·vision360.bo·
Bolivian Central Bank to Publish CBDC White Paper (Vision360)
Turkish Central Bank Call to Join the Digital Lira Project (CBRT)
Turkish Central Bank Call to Join the Digital Lira Project (CBRT)
The Central Bank of the Republic of Türkiye (CBRT) announced an open call for private sector entities to join the second phase of its Digital Turkish Lira Research and Development Project. The focus will be on developing innovative central bank digital currency (CBDC) applications in such areas as tokenization, programmable payments, self-sovereign identity, interoperability with existing systems, and machine-to-machine payments. Selected applicants will be invited to participate in sandbox experiments with the CBRT and its technology partners, furthering the development of digital currency infrastructure in Turkey. [Source: CBRT]
#CBDC#Turkey#Fintech#DFC
·tcmb.gov.tr·
Turkish Central Bank Call to Join the Digital Lira Project (CBRT)
Is Programmable CBDC Money from an Ontology of Money Perspective? (Safe Bank)
Is Programmable CBDC Money from an Ontology of Money Perspective? (Safe Bank)
A paper by Łukasz Hardt explores various philosophical theories about the nature of money and examines how these theories impact our understanding and development of programmable Central Bank Digital Currencies (CBDCs). It compares traditional and contemporary ontological perspectives, such as commodity-based, social constructivist, and abstract views of money, and discusses their relevance for digital innovations in central banking. By connecting theory to recent technological advances, the article highlights that a clear grasp of money’s fundamental nature is crucial for designing effective and widely accepted programmable CBDCs. [Source: Safe Bank]
#CBDC#Ontology#Money#Programmability#Fintech#DFC
·ojs.bfg.pl·
Is Programmable CBDC Money from an Ontology of Money Perspective? (Safe Bank)
Implications of Financial Architecture Change (SNB)
Implications of Financial Architecture Change (SNB)
Dirk Niepelt presented a paper at a Swiss National Bank (SNB) seminar that examines how shifts such as the introduction of retail central bank digital currencies (CBDCs) and private currencies can impact the economy. The paper identifies specific conditions—such as policy design, transfer mechanisms, and bank lending support—under which these changes can occur without altering real economic outcomes, a concept termed as “neutrality.” It argues that while a neutral transition to CBDCs is feasible through careful management, introducing private currencies poses greater challenges, often resulting in significant effects on resource allocation and market equilibrium. Ultimately, the economic impact of such financial innovation is not predetermined but depends on policy choices, institutional constraints, and underlying financial frictions. [Source: SNB]
#Fintech#Stablecoins#CBDC#DFC
·snb.ch·
Implications of Financial Architecture Change (SNB)
Strategic Digitization in Currency and Payment Competition (JFE)
Strategic Digitization in Currency and Payment Competition (JFE)
The Journal of Financial Economics (JFE) published an article that analyzes how competition from private digital money (like cryptocurrencies and stablecoins) and foreign currencies is driving national governments to digitize their own currencies and modernize payment systems. The authors find that less-dominant currencies tend to digitize faster to gain a competitive edge, while dominant ones like the U.S. dollar delay action until truly threatened. If governments hesitate too long, private digital money can take over, reducing the role of traditional fiat currencies in global payments. The study highlights that regulation, public–private partnerships, and strategic timing all impact this competition, and achieving efficient outcomes will require cross-border cooperation. Ultimately, the enduring significance of fiat currencies in digital payments depends on strategic, timely, and coordinated digitization by governments.
#CBDC#CryptoAssets#Fintech#Stablecoins#Money#DFC
·sciencedirect.com·
Strategic Digitization in Currency and Payment Competition (JFE)
Retail CBDCs In Practice: The Experience of the Sanddollar, E-CNY and JAM-DEX (SSRN)
Retail CBDCs In Practice: The Experience of the Sanddollar, E-CNY and JAM-DEX (SSRN)
A team of central bankers posted a paper on SSRN that reviews reviews the practical rollout and early experiences of retail CBDCs in The Bahamas (SandDollar), China (e‑CNY), and Jamaica (JAM‑DEX®) as of August 2025, noting that early public uptake was modest but that more recent data point to a gradual increase in use. It finds no evidence of significant movement of bank deposits into these CBDCs, in part because they are used primarily as payment instruments rather than savings vehicles, and most transactions incur no fees for consumers or merchants, implying potential cost savings versus traditional alternatives. Each jurisdiction’s design reflects distinct policy goals—such as financial inclusion and payments modernization—implemented via two‑tier, account‑based structures with streamlined onboarding for the unbanked and a range of incentives to spur user and merchant adoption. The study underscores that clear public communication, market‑based incentives to secure private sector participation, and international peer learning are critical for success, and that while CBDCs still represent only a small share of total payments, they fill specific gaps and offer useful lessons for global policymakers. [Source: SSRN]
#CBDC#China#Bahamas#Jamaica#Fintech#DFC
·papers.ssrn.com·
Retail CBDCs In Practice: The Experience of the Sanddollar, E-CNY and JAM-DEX (SSRN)
Point-of-Sale Integration: The Hidden Catalyst to CBDC Adoption
Point-of-Sale Integration: The Hidden Catalyst to CBDC Adoption
OMFIF interviewed G+D's Lars Hupel, who emphasizes that for central bank digital currencies (CBDCs) to be widely adopted, seamless point-of-sale (POS) integration is essential. Rather than building new hardware, he suggests leveraging current POS devices and card payment infrastructures, updating them with software for CBDC compatibility. A key to merchant acceptance is providing commercial incentives like lower transaction or scheme fees, rather than relying on regulations such as mandatory acceptance. For users, CBDC payments should be as intuitive as current digital payments, prioritizing convenience and instant, possibly offline, settlement. Ultimately, Dr. Hupel argues that easy technical and commercial integration at POS is the hidden, but critical, catalyst for CBDC adoption, promising greater resilience and efficiency in retail payments.
#CBDC#Fintech#Payments#DFC
·linkedin.com·
Point-of-Sale Integration: The Hidden Catalyst to CBDC Adoption
Results of the 2024 BIS survey on central bank digital currencies
Results of the 2024 BIS survey on central bank digital currencies
The Bank for International Settlements (BIS) published its annual central bank digital currency (CBDC) survey. It found that 91% of the 93 central banks surveyed were actively exploring CBDCs in 2024, with wholesale CBDC development generally more advanced than retail versions. The primary motivation remains preserving the role of central bank money amid declining cash usage and rising asset tokenization, with over one-third of central banks accelerating their CBDC work in response to stablecoin developments. Significant differences exist between advanced economies and emerging market economies in terms of legal frameworks, design features, and use cases—with emerging economies more likely to have clear legal authority and consider features like distributed ledger technology. Simultaneously, 67% of jurisdictions now have enacted or are developing regulations for stablecoins and cryptoassets, while asset tokenization has gained traction in most advanced economies and one-third of emerging markets, particularly in bond markets, suggesting a coordinated evolution of both public and private digital money initiatives.​​​​​​​​​​​​​​​​ [Read more at the BIS]
#BIS#CBDC#CryptoAssets#Stablecoins#wCBDC#rCBDC#Fintech#DFC
·bis.org·
Results of the 2024 BIS survey on central bank digital currencies
Digital Tenge Implementation in Public Spending
Digital Tenge Implementation in Public Spending

[July 10, 2025] National Bank of Kazakhstan (NBK) Chief Digital Officer Binur Zhalenov posted an update on progress of the digital tenge implementation for public finance purposes. More than ten public spending use cases already tested — including Digital VAT refunds, targeted funding for road repairs, National Fund-financed projects, and cross-border payment scenarios. Integration models with government information systems are being developed — paving the way for full-scale operations by the end of 2025. New pilots include the “Safe Deal” for real estate and vehicles, voucher scheme for state support measures, lending to the agro-industrial complex, construction projects, and procurement of high-value goods (medical and IT equipment).

#CBDC#Kazakhstan#Fintech#DFC
·linkedin.com·
Digital Tenge Implementation in Public Spending
Personal financial planning and the propensity of CBDC adoption
Personal financial planning and the propensity of CBDC adoption
A paper published in the International Journal of Bank Marketing explores how personal financial planning impacts individuals’ willingness to adopt central bank digital currencies (CBDCs), using survey data from Sweden and the UK. The research finds that individuals who engage in activities such as budgeting, tracking expenses or setting long-term goals are more likely to express interest in CBDC adoption. These behaviors, reflecting financial literacy and forward-looking decision-making, align with openness to innovative financial technologies, were strengthened by perceptions of security, safety, and trust in the new technology. Individuals who believe that CBDCs are secure and that their personal data will be protected are significantly more likely to adopt the technology. Socioeconomic factors like education and age, as well as personal attitudes toward technology and risk, also influence adoption.
#CBDC#Fintech#Sweden#UnitedKingdom#DFC
·emerald.com·
Personal financial planning and the propensity of CBDC adoption
Public Attitudes Towards CBDC and the Role of Trust in the Central Bank
Public Attitudes Towards CBDC and the Role of Trust in the Central Bank
A forthcoming Bar Ilan University Faculty of Law Research Paper reports on the results of a multi-stage nationally-representatvie survey conducted in collaboration with the Bank of Israel on Israeli attitudes towards a possible digital shekel. The survey revealed that willingness to adopt was strongly correlated with trust in the central bank; respondents who expressed higher trust in the Bank of Israel were much more likely to intend to use the digital shekel. Interestingly, concerns about privacy were lower among Israelis compared to similar surveys in other countries, which may explain their relatively high acceptance. When asked about the most important features, respondents prioritized ease of use across payment scenarios, fraud protection, the ability to use the currency offline, absence of hidden fees, the option to earn interest, and above all, assurance that the central bank would not have access to personal transaction data. Overall, the survey highlights that while technical features matter, trust in the central bank is the most decisive factor influencing public willingness to adopt CBDC in Israel.
#CBDC#Israel#Fintech#DFC#Privacy
·papers.ssrn.com·
Public Attitudes Towards CBDC and the Role of Trust in the Central Bank
Digital Dollar: Privacy and Transparency Dilemma
Digital Dollar: Privacy and Transparency Dilemma
The University of California (UC) Law Journal published a paper by Jiaying Jiang that explores the debate around implementing central bank digital currency (CBDC), focusing on the tension between privacy and regulatory demands. The author argues that the prevailing fear of government surveillance is not a technical inevitability but a result of outdated anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations. To address this, the paper proposes concrete solutions: modernizing AML/CFT rules to allow for limited, threshold-based anonymity in everyday CBDC transactions; updating institutional record-keeping and reporting so small or low-risk transfers can occur privately; adopting privacy-preserving technologies like token-based payment options and encryption; and introducing clear legal carve-outs that permit financial institutions to implement privacy-by-design features without breaching regulatory obligations. These reforms, the author contends, would enable a digital dollar that protects user privacy while still equipping authorities with the tools necessary for oversight and crime prevention—demonstrating that privacy and compliance can be achieved together through thoughtful legal and technical innovation.
#CBDC#Privacy#UnitedStates#Fintech#DFC
·hastingslawjournal.org·
Digital Dollar: Privacy and Transparency Dilemma
Reserve Bank of Zimbabwe conducts CBDC survey
Reserve Bank of Zimbabwe conducts CBDC survey
The Reserve Bank of Zimbabwe (RBZ) is reportedly again exploring the possibility of introducing a central bank digital currency (CBDC). The central bank is starting by conducting a CBDC consumer survey to solicit opinions on the design and nature of the CBDC and its overall acceptance by the public. In November 2021, the Cabinet mandated the RBZ to explore the feasibility of a CBDC. Since then, the RBZ has undertaken study tours to countries in the advanced stages of CBDC development, and has drawn up a roadmap for potential CBDC adoption in Zimbabwe.
#CBDC#Fintech#Zimbabwe#DFC
·bulawayo24.com·
Reserve Bank of Zimbabwe conducts CBDC survey
Pakistan's digital currency effort gets support from Japan
Pakistan's digital currency effort gets support from Japan
The State Bank of Pakistan (SBP) is reportedly partnering with Japan’s blockchain firm Soramitsu to pilot a central bank digital currency (CBDC) this year, with funding from Japan’s Ministry of Economy, Trade and Industry (METI) Global South program. Soramitsu, the developer of Cambodia’s Bakong central bank-backed interbank payment system, is also developing offline CBDC capabilities to enable smartphone transactions without internet access. Last month, SBP Governor Jameel Ahmad ihmad said Pakistan was “building up our capacity on the SBP digital currency” and hoped to roll out a pilot soon". https://www.ledgerinsights.com/pakistan-planning-cbdc-pilot/
#Fintech#CBDC#Pakistan#Soramitsu#DFC
·asia.nikkei.com·
Pakistan's digital currency effort gets support from Japan
Threshold Signatures for Central Bank Digital Currencies
Threshold Signatures for Central Bank Digital Currencies
Several G+D researchers published an evaluation of the use of threshold elliptic curve digital signature algorithm (ECDSA) signatures to harden key management in central bank digital currency (CBDC) systems, using G+D’s Filia as a case study. It motivates TSS to eliminate single points of failure in custodial wallets run by financial service providers (FSPs), and compares two integration options, selecting a separate key management network (KMN) that holds key shares and serves signing to Payment Processors for modularity and security. After defining CBDC-driven requirements (transparent coexistence with standard wallets, efficient DKG, high signing throughput, secure key export/import and key updates, compatibility with P-256 ECDSA, and strong composable security), the authors choose the CGGMP21 protocol (via the dfns Rust library) for its UC security, P-256 support, pre-signing, and one-round online signing. Benchmarks show DKG, pre-signing, and signing costs grow with threshold size; end-to-end tests integrating KMN into Filia reveal roughly an order-of-magnitude throughput drop versus non-threshold setups, especially for cross-FSP transfers, though performance is acceptable for smaller n and t. Identified bottlenecks include interactive signing when pre-signatures are unavailable after key updates; proposed mitigations include background pre-signing and persistent channels. The conclusion is that TSS meaningfully strengthens CBDC security and is feasible for real deployments with careful engineering and parameter choices.
#CBDC#CyberSecurity#Cryptography#Fintech#G+D
·arxiv.org·
Threshold Signatures for Central Bank Digital Currencies