BIS outlines hybrid CBDC model with focus on privacy
The Bank for International Settlements (BIS) Consultative Group on Innovation and the Digital Economy has proposed a hybrid framework for retail central bank digital currencies (CBDCs).
This model assigns central banks the responsibility for issuance and governance, while commercial banks manage consumer-facing services.
The BIS framework focuses on a modular, token-based design prioritising privacy.
According to the report, the architecture separates transaction data from user identity, ensuring privacy by allowing private intermediaries to handle identity information.
"Privacy can be guaranteed by separating transaction from identity information, such that the latter remains with private intermediaries and users," the report noted.
Despite these privacy assurances, CBDCs remain controversial, with critics citing risks to privacy and systemic concerns.
In September, the Bank of Canada paused its CBDC project, citing limited public interest.
In the United States, attorney John Deaton, known for representing XRP (CRYPTO:XRP) holders in the SEC case, has strongly opposed CBDCs, warning about their impact on individual freedoms.
On December 1, Missouri lawmaker Rick Brattin introduced a bill seeking to ban CBDCs in the state, prohibiting their acceptance as payment and their research or development.
In Europe, opposition is growing.
European Parliament member Sarah Knafo called for abandoning the digital euro, describing it as a move toward totalitarianism.
Knafo advocated for a Bitcoin (CRYPTO:BTC) strategic reserve instead, highlighting Bitcoin's increasing adoption by nations worldwide.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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