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Privacy and CBDCs: Digital Euro Assoc. Publishes Whitepaper

• The Digital Euro Association (DEA) released a white paper examining the importance of privacy in Central Bank Digital Currencies.
• Ripple Director of CBDC Product Management Anthony Ralphs contributed to the paper, which recommends minimum privacy standards for global CBDC implementations.
• Blockchain technology is seen as an optimal solution for providing enhanced security and access management to ensure CBDC user privacy.

Digital Euro Association Publishes Whitepaper on Privacy and CBDCs

The Digital Euro Association (DEA) has published a new whitepaper to which Ripple Director of CBDC Product Management Anthony Ralphs was a contributor. With central banks around the world increasingly exploring Central Bank Digital Currencies (CBDCs), privacy has become an important consideration that must be addressed if they are to be successfully adopted, used, and implemented.

Ripple’s Contribution

Ripple called attention to this development in a tweet and blog post today, noting that Anthony Ralphs’ expertise and research were included in the DEA’s working group. According to Ripple, blockchain is seen as the best technology for providing enhanced security and access management to ensure user privacy across various use cases being implemented by central banks.

Minimum Standards Recommended

To gain user trust and allay fears of government surveillance, the DEA provides recommendations for improving privacy and security in a CBDC system. These include strong encryption methods, strict access controls, regular audits and a strict disciplinary regime for data breaches among other things – with each central bank having different views on how these should be applied.

Increased Global Data Flows Expected

In addition to this, Ripple notes that the various use cases proposed by CBDCs make it possible for increased cross-border data flows in future – when done with respect for users’ data privacy rights.

Independent Think Tank

It should be noted that while DEA members include Ripple as well as German institutions such as Bundesbank or Ernst & Young; it remains an independent voice of society unaffiliated with either the Eurosystem or any European organization.