Mu Changchun: Digital Currency Bridge Platform Implements Privacy Control of Core Transaction Data

Beijing News Shell Finance News (Reporter Jiang Fan) On November 2nd, Mu Changchun, the Digital Currency Research Institute of the People's Bank of China, stated at the Hong Kong Science and Technology Week Currency Bridge Symposium that the Currency Bridge platform has achieved privacy control over core transaction data such as the identities of payers and payees, transaction amounts, and CBDC contracts invoked.

Mu Changchun introduced that through a pseudonym mechanism implemented by randomly generated key pairs, the Currency Bridge platform ensures that for a single cross-border transaction, only the counterparty and the corresponding central bank/currency authority can understand the transaction details. For example, a commercial bank in the United Arab Emirates uses e-HKD to make payments to a commercial bank in the Hong Kong Special Administrative Region on a currency bridge. The transaction details will only be viewed by the payer, payee, the Central Bank of the United Arab Emirates, and the Hong Kong Monetary Authority. For the Bank of Thailand, the Digital Currency Research Institute of the People's Bank of China, and other participants, they cannot see any sensitive transaction information.

Mu Changchun also introduced that the Currency Bridge platform has built a technical system, with its core being a blockchain specifically developed for Currency Bridge: Currency Bridge Blockchain (mBridgeLedger or mBL).

It is the core of the currency bridge technology architecture, supporting atomized payment and foreign exchange synchronous settlement services, wallet management, and privacy protection control. "Mu Changchun pointed out that the currency bridge code is fully visible to all participating central banks/currency authorities, auditable, testable, and open source among central bank/currency authority participants. The underlying currency bridge blockchain adopts a Byzantine fault-tolerant algorithm, the Great Sage Consensus, aimed at shortening the time required to reach consensus between nodes and improving overall protocol performance and efficiency.

Mu Changchun introduced that the currency bridge blockchain is composed of nodes from participating central banks/currency authorities and commercial institutions. Each participant manages their own nodes, and all sensitive data such as transaction records and user certificates are stored at their respective nodes, protected through blockchain privacy management mechanisms. Specifically, the nodes of the central bank/monetary authority serve as validation nodes in the blockchain consensus protocol; As a blockchain synchronization node, nodes of commercial institutions have the same functions as nodes of central banks/monetary authorities, except for not participating in consensus mechanisms.

In addition to currency bridge blockchain node management, the relevant systems of central banks/currency authorities and commercial institution participants also include currency bridge front-end and back-end modules. Mu Changchun stated that the front-end provides a user interaction interface, and the back-end performs business logic processing.

Editor Wang Jinyu

Proofread by Liu Baoqing