• The Digital Euro Association (DEA) has published a new whitepaper on the topic of privacy and Central Bank Digital Currencies (CBDCs).
• Ripple Director of CBDC Product Management Anthony Ralphs was a contributor to this paper.
• The DEA recommends strong encryption methods, strict access controls, regular audits and a strict disciplinary regime for data breaches as ways to ensure data privacy.
Digital Euro Association Publishes Whitepaper on Privacy & CBDCs
The Digital Euro Association (DEA) has published a new whitepaper to examine the importance of privacy when it comes to Central Bank Digital Currencies (CBDCs). Ripple Director of CBDC Product Management Anthony Ralphs was one of the contributors to this paper.
Ripple Highlights Whitepaper
Ripple called attention to this development in a tweet and blog post today. In their blog post, they explain that with central banks around the world increasingly exploring CBDCs, privacy has become an important consideration. The white paper takes a look at the subject of privacy and CBDCs and examines how it impacts successful adoption, use, and implementation of these digital currencies.
Minimum Standards To Gain User Trust
To gain user trust and allay fears of government surveillance, the DEA provides recommendations for improving privacy and security in a CBDC system. Anthony Ralphs provided his expertise and research to this working group which concludes that each central bank has different views and values regarding privacy. Because of this, Ripple and the DEA define some minimum standards that should be respected on a global scale: blockchain technology for enhanced security & access control; strong encryption methods; strict access controls; regular audits; strict disciplinary regime for data breaches; increased global cross-border data flows in future implementations.
Independent Think Tank Unaffiliated With European Organizations
It should be noted that the DEA is an independent think tank unaffiliated with either the Eurosystem or any European organization. In addition to Ripple, members include institutions such as German Bundesbank (“Bundesbank”), Ernst & Young, RTGS.global, Circle, among other German banks.
Ultimately, private sector involvement is critical when establishing standards for data protection across different use cases related to Central Bank Digital Currencies implementations – whether domestic or international – as well as exploring potential applications where blockchain can support trusted ecosystems based on mutual consent between actors involved in these systems