Privacy and Transparency in CBDCs: A Regulation-by-Design AML/CFT Scheme

[en] Central banks and governments all over the world are increasingly exploring digital versions of fiat money, known as retail Central Bank Digital Currencies (CBDCs). Most initiatives rely on Distributed Ledger Technologies and are presented as alternatives to physical cash. Consequently, anonymity-related regulatory questions arise in terms of Anti-Money Laundering and Counter-Terrorist Financing compliance. Against this backdrop, this paper provides a techno-legal taxonomy of approaches to balance privacy and transparency in CBDCs without thwarting accountability, but it also underlines cross-sectoral impacts. The contribution heeds regulation-by-design as its core methodological foundation, with Privacy-Enhancing Technologies as the relevant use case. Thus, it highlights that not only technology aids legal purposes, but also that some regulatory requirements ought to be designed into technology for one to reach agreed-upon results and/or standards.

Disciplines :

Engineering, computing & technology: Multidisciplinary, general & others

Author, co-author :

POCHER, Nadia ; Universitat Autònoma de Barcelona ; Alma Mater Studiorum Università di Bologna ; Katholieke Universiteit Leuven - KUL

Veneris, Andreas

External co-authors :

yes

Language :

English

Title :

Privacy and Transparency in CBDCs: A Regulation-by-Design AML/CFT Scheme

Publication date :

May 2021

Event name :

2021 IEEE International Conference on Blockchain and Cryptocurrency (ICBC)

Event organizer :

IEEE

Event place :

Sydney, Australia

Event date :

from 03-05-2021 to 06-05-2021

Audience :

International

Main work title :

Proceedings of the 2021 IEEE International Conference on Blockchain and Cryptocurrency (ICBC)

Peer reviewed :

Peer reviewed

European Projects :

H2020 - 814177 - LAST-JD-RIoE - Law, Science and Technology Joint Doctorate: Rights of the Internet of Everything

Funders :

CE - Commission Européenne

Available on ORBilu :

since 10 July 2023

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