- Central Bank project Tourbillon achieves payer anonymity in CBDC transactions.
- Tourbillon ensures user privacy by not requiring personal information disclosure to any party, including merchants.
Central banks have collaboratively unveiled a pioneering project named “Tourbillon,” shedding light on the possibility of preserving privacy in transactions involving national digital currencies. The project was spearheaded by the Bank for International Settlements (BIS) Innovation Hub in Switzerland and scouted into the realm of payer anonymity within the context of central bank digital currencies (CBDCs).
Recent surveys conducted by prominent financial institutions such as the Bank of England and the European Central Bank consistently underscored the paramount importance of privacy in user preferences for digital currencies.
Following that, the final report of a Tourbillon reveals a significant breakthrough, showcasing payment methods where users are not required to reveal personal information to any party, including the merchant.
Under the Tourbillon framework, the buyer’s identity remains shielded during transactions. The development poised to redefine the privacy landscape in the realm of retail CBDCs. Importantly, the project maintains a delicate balance by disclosing the merchant’s identity solely to their respective bank when a payment is initiated.
This strategic measure aims to limit issues like tax evasion and illicit payments, ensuring a secure and transparent financial ecosystem. However, the report highlights that further research is required to optimize transaction speeds.
As central banks continue to explore and experiment with these novel technologies. The Tourbillon project may stand as a testament to the industry’s commitment to striking a balance between privacy, security, and transparency in the digital financial era.
