Under the direction of the Bank for International Settlements (BIS) , central banks in the Americas have delineated critical technical priorities for a prospective Central Bank Digital Currency (CBDC) architecture.
CBDC solution-seeking or implementing nations will find the report by the Consultative Group on Innovation and the Digital Economy (CGIDE) to be an invaluable resource.
Central banks are delineating critical technological elements for a forthcoming CGIDE proposal concerning a Central Bank Digital Currency (CBDC) proof of concept through a collaborative endeavor.
Technical requirements, including interoperability, scalability, user-centric design, security, and data privacy, are taken into account in the proposal.
The proposed CBDC architecture is a general reference for central banks engaged in CBDC research or development to address technological priorities.
CGIDE members and observers assert that this does not imply a policy position regarding the design, issuance, adoption, or technical standards of CBDCs.
During its inception, the CGIDE technical task force (TTF) will focus predominantly on programmability functionalities that are associated with the processes of clearance and settlement.
The selected technical prerequisites within each category, which are directly related to these characteristics, were ascertained via a member survey of the TTF.
A member of the central bank determined the technical requirements based on policy objectives.
The announcement follows an update on November 29 regarding Project Tourbillon, which was spearheaded by the innovation center of the BIS.
Significant advancements have been disclosed to achieve a harmonious equilibrium between transparency and privacy in CBDCs.
Recently published by Project Tourbillon, the final report outlines a nuanced approach to privacy management in CBDC transactions.
A system that permits users to make payments without disclosing personal information to merchants or other parties is proposed in the proposal.
