The post ECB Unveils Key Features in First CBDC Progress Report appeared on BitcoinEthereumNews.com.

In its inaugural progress report on the development of a Central Bank Digital Currency (CBDC), the European Central Bank (ECB) has detailed significant privacy safeguards and operational capabilities aimed at modernizing financial transactions. Released on June 24, this comprehensive report offers a glimpse into the ECB’s strategy for integrating digital currency with existing financial infrastructures while addressing privacy concerns and the potential for offline transaction support. ECB Enhances Digital Euro with Strong Privacy The ECB has strongly emphasized the privacy of individuals engaging with the proposed digital euro. The report outlines several technical safeguards, including pseudonymization, robust encryption, and the use of hashing functions. These measures are designed to prevent the tracking of individual transactions while maintaining a high-security standard. Moreover, the ECB mandates that payment service providers obtain explicit consumer consent before commercializing financial data. This framework is intended to bolster consumer trust and ensure high transparency in handling personal data. Another pivotal feature of the ECB’s digital currency initiative is its support for offline transactions. The progress report describes how these transactions can be conducted directly between two parties without an intermediary. This would be facilitated through advanced payment devices such as smartphones and specially designed “smart cards.” When online connectivity is restored, these cards might be equipped with battery power or utilize bridging relays to sync transactions with the CBDC blockchain. This capability could significantly enhance the accessibility and usability of the digital euro, especially in scenarios where internet service is unreliable or unavailable. The ECB is not only focusing on the technical aspects of the CBDC but also ensuring that broad-based consultations shape the framework. Establishing the “Rulebook Development Group” marks a strategic move to involve various stakeholders, including service providers, infrastructure developers, and the general public, in crafting the CBDC’s regulatory and technical frameworks. The…

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Filed under: News - @ June 25, 2024 9:14 am