Digital Currency Research Institute of the Peoples Bank of China: Future Development of Privacy Protection Technology Based on Zero-Knowledge Proofs

Digital Currency Research Institute of the Peoples Bank of China: Future Development of Privacy Protection Technology Based on Zero-Knowledge ProofsMu Changchun, Director of the Digital Currency Research Institute of the Peoples Bank of China, stated at the Sibos 2024 Multilateral CBDC Bridges: Connecting Global Economies with Central Bank Digital Currencies panel discussion on October 23 that the Institute will systematically improve the monetary bridge technology in three aspects.Firstly, the Digital Currency Research Institute will focus on the development of privacy protection mechanisms

Digital Currency Research Institute of the Peoples Bank of China: Future Development of Privacy Protection Technology Based on Zero-Knowledge Proofs

Mu Changchun, Director of the Digital Currency Research Institute of the Peoples Bank of China, stated at the Sibos 2024 Multilateral CBDC Bridges: Connecting Global Economies with Central Bank Digital Currencies panel discussion on October 23 that the Institute will systematically improve the monetary bridge technology in three aspects.

Firstly, the Digital Currency Research Institute will focus on the development of privacy protection mechanisms. In the future, a privacy protection system based on zero-knowledge proof technology will be built, aiming to go live in 2025. The design of zero-knowledge proofs allows the verification of the legitimacy and sufficient funds of both parties involved in a transaction without disclosing sensitive information such as account balances and transaction timestamps, effectively protecting user privacy.

Secondly, the Digital Currency Research Institute will improve the systems development and operation and maintenance (DevOps) system. The monetary bridge system adopts a decentralized deployment model, with each party independently maintaining it to ensure the systems security and stability. In the future, the Institute will use the DevOps system to promote joint development, code delivery, code review, and continuous integration, continuous delivery, and continuous deployment, further optimizing the system's functionality and efficiency.

Finally, the Digital Currency Research Institute will further enhance the openness and transparency of the monetary bridge platform. Currently, the monetary bridges source code is fully transparent to all participating central banks, enhancing trust among participants. In the future, the Institute will collaborate with the Bank for International Settlements (BIS) and engage service providers to conduct third-party code reviews and open-source assessment preparations, ultimately achieving full open-source, further improving the platform's credibility.

Director Mu Changchun emphasized that the Digital Currency Research Institute will continue to invest in research and development, continuously optimizing monetary bridge technology to contribute to global economic development and financial innovation.