The European Central Bank (ECB) has established a proof of concept for the partially anonymous digital currency of the central bank (CBDC) based on the Corda blockchain platform.
The solution is designed to eliminate the contradiction between the demand for anonymity of payments and the requirements of regulators in terms of combating money laundering and the financing of terrorism (AML / CFT).
In theory, the technology uses “anonymity vouchers” for users who make small transactions. However, the privacy function does not apply for large volume payments.
The proposed scheme purports four parties: the central bank, two intermediaries and the anti-money laundering authority. All of them are nodes that control the decentralized application.
Intermediaries process transactions on behalf of their clients and offer them custodial services as well as maintain a registry.
Each network user receives a certain number of “anonymity vouchers” for a limited period of time. When making a transaction with a low cost, he can spend a voucher so as not to disclose his personal data to intermediaries or the central bank.
CBDC transactions in which value exceeds the established limit are supervised by the anti-money laundering authority, ensuring compliance with AML regulations.
Earlier, the head of the ECB, Christine Lagarde, said that the regulator will determine the goals of creating its own digital currency by mid-2020. In her opinion, a hasty launch of CBDC could cut the ECB’s ties with other banks.