The Bank of England and Nuggets Collaborate on Privacy and Identity Layer for Digital Pound
The Bank of England (BoE) has partnered with payments platform Nuggets to develop a privacy and identity layer for a potential digital pound. The collaboration aims to create a private and secure system that prevents tracking and correlation of transactions, as well as fraud and money laundering. Nuggets plans to implement zero-knowledge proofs on its privacy layer, allowing individuals to verify their identity without sharing their data. The BoE launched its consultation on a central bank digital currency in February and acknowledged the need for a digital pound but will not make a decision until 2025. Digital pound privacy has been a concern for lawmakers.
Key Points:
– The Bank of England is working with Nuggets to develop a privacy and identity layer for a potential digital pound.
– The collaboration aims to prevent the tracking and correlation of transactions, as well as fraud and money laundering.
– Nuggets plans to incorporate zero-knowledge proofs on its privacy layer to allow individuals to verify their identity without sharing their data.
– The BoE launched a consultation on a central bank digital currency in February and acknowledged the need for a digital pound.
– The decision on issuing a digital pound will not be made until at least 2025.
Hot Take
The collaboration between the Bank of England and Nuggets to develop a privacy and identity layer for a potential digital pound is a significant step towards addressing concerns about digital currency privacy. By incorporating zero-knowledge proofs, Nuggets aims to provide individuals with a secure way to verify their identity without compromising their data. The BoE’s consultation on a central bank digital currency and its recognition of the need for a digital pound demonstrate its commitment to exploring innovative financial solutions. While the decision on issuing a digital pound is not expected until 2025, this collaboration showcases the BoE’s proactive approach in harnessing the benefits of technology while ensuring privacy and security.
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