Digital cash offers ‘cash-like privacy,’ but bank data breaches threaten users: BIS
Summary
The BIS’s Project Aurum Phase 2 report describes a digital cash prototype designed to balance privacy with transaction transparency. It says the system may provide cash-like privacy, but is not ready for production. A breach at one bank could expose that bank’s customer data, while a validator compromise alone would not reveal users’ identities. The work examines privacy safeguards for a potential central bank digital currency amid concerns about surveillance and control.
