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      Bank for International Settlements Releases Report on Digital Cash Privacy Technologies

      On October 13, 2026, the Bank for International Settlements (BIS) Innovation Hub published the second phase report of the Aurum project, which focuses on privacy-enhancing technologies for digital cash. This phase introduces a prototype designed to protect user privacy while helping policymakers navigate the balance between privacy and compliance in digital cash systems.

      The prototype is built on the existing Aurum codebase and incorporates principles of privacy by design and default privacy. It aims to provide customizable features that cater to business needs while ensuring compliance with regulatory requirements. The project suggests that privacy can be integrated into digital cash design through technological solutions, minimizing unnecessary exposure of personal and transaction data without compromising compliance and system integrity.

      The report emphasizes that privacy-protecting designs can aid central banks and policymakers in understanding the trade-offs involved in digital cash systems. The functionalities of the prototype allow for policy flexibility, enabling adjustments between privacy, transparency, compliance, and other factors based on varying policy choices and risk preferences. Additionally, the report encourages central banks to consider privacy-enhancing technologies for broader applications beyond digital cash.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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