#15: CBDC & Privacy Technology

CBDC Broadcast

14 Mar

22nd March 2023

With:

| Michael Greco (Digital Dollar Project)

| Robert Zev Mahari (MIT)

In Session #15, Michael Greco (Digital Dollar Project) and Robert Zev Mahari (MIT) join FNA to navigate the "Privacy Dilemma." While digital payments offer convenience, they often come at the cost of a permanent data trail. Our guests explore whether a two-tier rCBDC system—where the central bank manages the ledger and private intermediaries handle identity—can successfully firewall personal data from the state.

The discussion dives deep into Privacy-Enhancing Technologies (PETs), such as zero-knowledge proofs and pseudonymization, to determine if we can build a system that is "compliant by design" yet remains a bastion of personal freedom. We also address the hard question: In an era of increasing surveillance, is the quest for "extreme" cash-like privacy in a digital currency even realistic?

Key Discussion Points:

The Trust Gap: Who are we really trusting when we use a CBDC—the technology, the commercial bank, or the central bank?
Two-Tier Architecture: How separating the "wholesale" and "retail" layers can act as a natural privacy buffer.
AML vs. Anonymity: Balancing the mandate of Anti-Money Laundering (AML) regulations with the fundamental right to financial privacy.
Technological Safeguards: The current state of PETs and their ability to shield user behavior from mass surveillance.
The Evolution of Privacy: How CBDC design choices today will set the precedent for digital rights over the next century.

Watch on Demand: