What The Bank of England and Nuggets are developing for a potential digital Pound
The Bank of England (BoE) is collaborating with Nuggets, a payments platform, to create a privacy and identity layer for a potential digital pound. The goal is to ensure secure, private, and fraud-resistant transactions.
Main Breakdowns:
- Nuggets will design a private and secure payments feature for the digital pound using untraceable connections and credentials verification without revealing identities.
- Nuggets’ approach will make it difficult to track and correlate transactions, preventing fraud and money laundering.
- The identity layer of the digital pound will use Zero-Knowledge proofs, allowing users to verify their identities without sharing their data.
- Nuggets’ collaboration with the BoE is part of the bank’s efforts to ensure privacy and security for the proposed digital pound.
- The UK central bank has been discussing the idea of a digital pound but won’t make a decision on issuing one until 2025.
Hot Take:
The collaboration between the Bank of England and Nuggets is a significant step towards developing a secure and privacy-focused digital pound. By leveraging Nuggets’ technology, the digital pound can provide users with control over their private data and protect against fraud. However, the decision on whether to issue a digital pound will not be made until 2025, indicating the cautious approach taken by the UK central bank.
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