Bank of Canada explores technical path for retail CBDC, proposed design emphasizes privacy and speed

PANews reported on July 6 that according to Coindesk, the Bank of Canada outlined a feasible design for a Canadian digital dollar system in a new research paper. The paper explores the feasibility of the OpenCBDC 2PC system for retail CBDCs focused on basic payments. The OpenCBDC 2PC model was developed in collaboration with the MIT Digital Currency Initiative. The design prioritizes privacy, speed, and decentralization, allowing users to hold digital funds directly, just like digital cash. The proposed design emphasizes user privacy and decentralization while taking into account core audit and compliance requirements. But key challenges remain, including scalability performance and integration with existing retail payment systems.