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Bank of England studies ZK-proofs to enhance user privacy for digital pound

Author: Content Editor
The Bank of England has conducted research suggesting that privacy technologies like zero-knowledge proofs (ZK-proofs) could enhance user control over data in a potential digital pound. The bank's report, titled "Enhancing the Privacy of a Digital Pound," explores how technologies such as pseudonymization, ZK-proofs, and secure multiparty computing could be applied to digital currency systems to minimize data sharing and enhance user privacy. The bank reaffirmed its commitment to safeguarding user privacy following public feedback, assuring that neither the government nor the central bank would have access to users' personal data. The bank acknowledged the limitations and trade-offs of emerging privacy-enhancing technologies and called for further research to address regulatory compliance challenges. The Bank of England has been exploring the potential of a digital pound since 2020, but has yet to make a final decision on its launch.

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