Digital cash offers ‘cash-like privacy,’ but bank data breaches threaten users: BIS

BIS said that digital cash can achieve “cash-like privacy,” however, the technology isn’t yet production-ready due to risks such as bank data breaches.

The Bank for International Settlements (BIS) said digital cash can offer privacy properties similar to cash, but highlighted remaining risks, including how potential bank data breaches may expose users’ personal data.

While digital cash can achieve “cash-like privacy,” the technology stack is not yet “production ready,” wrote BIS in its Project Aurum Phase 2 report, published on Tuesday.

This phase implements a privacy-preserving digital cash prototype using BIS’s existing Aurum codebase to take a balanced approach between complete anonymity and full transaction transparency, BIS said.

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