Central banks in the Americas, under the guidance of BIS, have outlined key technical priorities for potential CBDC architecture.
The Consultative Group on Innovation and the Digital Economy (CGIDE) report is a valuable reference for countries researching or implementing Central Bank Digital Currency (CBDC) solutions.
Central bank collaboration
In a cooperative initiative, central banks are laying out key technological aspects for a future CGIDE proposal on a Central Bank Digital Currency (CBDC) proof of concept. The proposal considers technical requirements such as interoperability, scalability, user-centric design, security, and data privacy.
Aiming to address technological priorities, the proposed CBDC architecture is a general reference for central banks involved in CBDC research or development without representing a policy stance on CBDC design, issuance, adoption, or technical standards, according to CGIDE members and observers.
In its initial phase, the CGIDE technical task force (TTF) will primarily concentrate on programmability features related to clearing and settlement. The chosen technical requirements within each category, specifically tied to these features, were determined through a survey among TTF members. Each central bank member selected technical requirements based on policy objectives.
Striking a balance
The announcement descends from an update about Project Tourbillon on Nov. 29, led by the Bank for International Settlements’ innovation hub, as notable progress has been unveiled in striking a balance between privacy and transparency within CBDCs.
The final report, recently released by Project Tourbillon, presents a nuanced strategy for handling privacy in CBDC transactions. The proposal suggests a system allowing users to make payments without divulging personal information to merchants or other involved parties.