February 19, 2021, 4:56AM EST
• 8 min read

Central Bank Digital Currency Privacy

Quick Take

  • A common misconception about central bank digital currencies (CBDCs) is that privacy can’t exist while transacting, which makes many citizens anxious about general-purpose or retail CBDC. 
  • Through the EUROchain research network, the European System of Central Banks (ESCB) developed a proof of concept using anonymity vouchers to enable privacy for certain retail CBDC transactions in 2019. 
  • More recently, two McGill University researchers submitted a novel design proposal for a ‘Privacy-Hybrid CBDC’ to the Bank of Canada’s Model X Challenge.

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