Whitepaper for Ethereum-based
The document states that maintaining control over money is one of the main motives of central banks in various countries to introduce a CDBC. According to the whitepaper, the use of a “permissioned blockchain” based on Ethereum could help central banks to maintain this control.
Central Bank Digital Currencies are digital assets that are accounted for using a single ledger (distributed or not) that acts as a single source of truth. Central bank digital currencies represent a claim against the central bank, similar to how banknotes function today. Finally, the currency is central bank controlled––meaning the supply of CBDC is fully controlled and determined by the central bank. A CBDC differs from a traditional cryptocurrency stablecoin where issuance isn’t controlled by a bank, but rather a group of individuals.
Specifically, ConsenSys proposes a model in which the central bank establishes a private, permissioned Ethereum Network in which intermediaries act as nodes. This would allow the central banks to retain control without having to provide the necessary infrastructure:
The system could also support the confidentiality of critical business data in the network. While the central bank would have an overview of all transactions, the individual network participants would not be able to see the volume or individual transactions. Thus, the system supports the implementation of KYC/AML and related regulations by providing traceability and monitoring capabilities to the competent authorities.
Author : Jake Simmon