Confidentiality under conditions. The Bank for International Settlements (BIS), headquartered in Basel, Switzerland, is a supranational financial organization that brings together central bankers of the planet. BIS regularly explains to us the extent to which central bank digital currencies (MNBC) are “great and safe”and to what extent Bitcoin (BTC) cryptocurrencies are “terrible and risky” (the phrase, unfortunately, is not exaggerated). Respect and Protection of private life by MNBCs is, however, a major source of concern for individuals. The bank of banks tries to reassure and promises “confidentiality”.
The BIS is very (very) interested in the success of MNBCs
In the perspective desired by more and more bankers and large financiers to eliminate moneycentral bank digital currencies (MNBC) are a convenient way to push the money out (definitive).
However, even the Bank for International Settlements admits, in a recent statementthis respect for private life is a major source of concern in this cashless future made up of digital payments that are therefore traceable :
“The use of cash is declining around the world as digital payments continue to expand. (…) In light of this evolution, concerns arise about the potential erosion of privacy. Not surprisingly, public consultations carried out by central banks on retail MNBCs (retail) show that privacy protection is a fundamental user requirement. »
Excerpted from BIS press release
The bank of banks promises confidentiality with its Turbilhão Project
In this press release, published on November 29, 2023, the BIS (or BISaccording to the acronym in English) therefore presents its “Tourbillon Project” state that it is also concerned about respect for privacy by central bank digital currencies.
It is more precisely the Swiss BIS Innovation Hub of the banking and financial organization that takes care of this project, and that claims to want (and be able!) to resolve the trilemma to guarantee both the confidentialitythere security and thescalability (scalability) from MNBCs.
This Turbilhão project thus allowed the development and testing of two centralized digital currencies to try “payer anonymity” according to BIS. This anonymity is, however, very relativefollowing the definition given by central bankers:
“Project Whirlwind tested the concept of payer anonymity, which provides cash-like anonymity to payers but not to recipients. For example, a consumer who pays a merchant through an MNBC does not disclose any personal information to anyone, including the merchant (…). However, the merchant’s identity is disclosed to the merchant’s bank (as part of the payment) and remains confidential there. (…) The central bank can see the value of the transaction, but does not know the details relating to the consumer or merchant. »
Extract from the press release about the BIS “Projeto Turbilhão”
With this turmoil, the BIS bankers have just invented a kind of “half money”, where only one of the two parties benefits from the confidentiality of cash payments. If we answer, in the case of traders/services, that this avoids ugly black money, this half confidentiality also concerns exchanges between individuals ? We understand better and better why Mastercard believes MNBCs will be poorly received by the general public.