The DEA explores privacy concerns surrounding CBDCs.
The Digital Euro Association (DEA) has released a new whitepaper with contributions from Ripple Director of CBDC Product Management Anthony Ralphs.
The blockchain payments company disclosed this in a tweet today. The latest paper from the think tank explores privacy controls for central bank digital currencies (CBDCs), as explained in an accompanying blog post.
With global interest and growing exploration of #CBDCs, #privacy has become a crucial aspect to consider.
Learn more and read the DEA whitepaper with contributions from Ripple’s Head of Digital Currency Product & Solutions @moderndosh.https://t.co/CIvHUf8XPH
— Ripple (@Ripple) March 28, 2023
As highlighted in the article, privacy remains the primary concern of citizens when considering CBDCs, and these concerns must be tackled if governments are to ensure adoption.
“It was a pleasure to collaborate with such an expert group of contributors on the CBDC and Privacy whitepaper,” Ralphs said in a written statement.
“One thing the paper explores is that CBDCs—and the blockchain technology they are built upon—offer enhanced security and access management to help ensure privacy across the various use cases that are being implemented,” he added.
The DEA’s latest paper concludes that each central bank would have a different view on privacy. Consequently, it suggests the creation of minimum global standards. Some recommended measures include strong encryption, access restrictions, audits and deterrence against privacy violations.
A digital euro would “at least” offer the same level of privacy obtainable with today’s electronic payment methods, European Central Bank (ECB) president Christine Lagarde said in November.
However, in a recent virtual Bank of International Settlements event, she also conceded that it would never provide the same level of anonymity as cash, as reported by Bloomberg. For this reason, cash would always be around, said Lagarde. Nonetheless, she hailed the “resilience” a CBDC could provide in times of conflict.
The ECB digital euro project remains in the “investigation phase.”
It bears mentioning that Ripple continues positioning itself as a solution provider in the CBDC race. As recently reported, Ripple Senior Vice President Brook Entwistle has disclosed that the firm is currently working with 20 countries on CBDC solutions. In addition, the company was also mentioned in the Bank of England’s digital pound consultation paper.
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