The Deutsche Bundesbank and the Digital Currency Initiative (DCI) from MIT have introduced a cooperation to study the security & privacy facets of the central bank digital currency (CBDC). The joint venture will seek to solve the problems of security in the customer data of digital payments.Â
Joachim Nagel, President of the Bundesbank, emphasized that safeguarding privacy is paramount in the development of CBDCs. He assured that the Eurosystem is committed to protecting users’ privacy rights.
The study intends to generate an approach to address security in CBDCs, which minimizes the chances of breach of privacy by the users. Nagel highlighted the inefficiencies inherent in present payment methods, advocating for a digital euro that results in straightforward transfers inside the eurozone.
MIT DCI has extensive experience collaborating with central banks, notably the Federal Reserve and the Bank of England. This makes it a crucial partner in advancing research on Central Bank Digital Currencies (CBDCs).
Also Read: Swiss National Bank Explores Crypto and CBDC Possibilities
