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CBDC Privacy Issues: Ripple, DEA Explore Consumer Concerns

Published 2023-03-28, 07:15 a/m
© Reuters.  CBDC Privacy Issues: Ripple, DEA Explore Consumer Concerns
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Coin Edition -

  • Ripple and the DEA examined how privacy impacts CBDC’s successful adoption.
  • An exec at Ripple said CBDCs and blockchain protect privacy across use cases.
  • Countries that have launched CBDCs include India, Nigeria, China, and Australia.

The Ripple blockchain, in collaboration with the Digital Euro Association (DEA), released a white paper examining the importance of privacy and how it impacts the successful adoption, usage, and implementation of digital currencies, particularly Central Bank Digital Currencies (CBDCs).

The white paper examines the worries of customers who are afraid that the adoption of CBDCs may result in the government monitoring and surveillance of their personal information and activities. Furthermore, it explores technologies that preserve privacy and makes recommendations for improving security and privacy in a CBDC system.

Anthony Ralphs, Ripple‘s Head of Digital Currency Product & Solutions, provided his thoughts and expertise on the study. According to Ralphs, the white paper investigates the use of CBDCs and blockchain technology, which can enhance security and access control to maintain privacy across various use cases.

The paper concludes that each central bank will have a different view and values around privacy, but some minimum standards should be respected globally. It also suggests that establishing robust regulations governing CBDCs will further protect users’ privacy.

The document read in part: “The implementation of strong encryption methods, strict access controls, regular auditing, and a stringent disciplinary regime for privacy violations can help ensure a CBDC system’s security. Establishing robust regulations governing the use of CBDCs can provide further protection for the privacy of individuals.”

Notably, the release of this paper is timely, as more and more central banks are exploring the potential of CBDCs. Countries that have launched CBDCs include India, Nigeria, China, and Australia.

The post CBDC Privacy Issues: Ripple, DEA Explore Consumer Concerns appeared first on Coin Edition.

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