Paper 2023/1717

A Framework for Resilient, Transparent, High-throughput, Privacy-Enabled Central Bank Digital Currencies

Elli Androulaki, IBM Research - Zurich
Marcus Brandenburger, IBM Research - Zurich
Angelo De Caro, IBM Research - Zurich
Kaoutar Elkhiyaoui, IBM Research - Zurich
Alexandros Filios, IBM Research - Zurich
Liran Funaro, IBM Research - Haifa
Yacov Manevich, IBM Research - Zurich
Senthilnathan Natarajan, IBM Research - Haifa
Manish Sethi, IBM Research - Thomas J. Watson Research Center

Central Bank Digital Currencies refer to the digitization of lifecycle's of central bank money in a way that meets first of a kind requirements for transparency in transaction processing, interoperability with legacy or new world, and resilience that goes beyond the traditional crash fault tolerant model. This comes in addition to legacy system requirements for privacy and regulation compliance, that may differ from central bank to central bank. This paper introduces a novel framework for Central Bank Digital Currency settlement that outputs a system of record---acting a a trusted source of truth serving interoperation, and dispute resolution/fraud detection needs---, and brings together resilience in the event of parts of the system being compromised, with throughput comparable to crash-fault tolerant systems. Our system further exhibits agnosticity of the exact cryptographic protocol adopted for meeting privacy, compliance and transparency objectives, while ensuring compatibility with the existing protocols in the literature. For the latter, performance is architecturally guaranteed to scale horizontally. We evaluated our system's performance using an enhanced version of Hyperledger Fabric, showing how a throughput of >100K TPS can be supported even with computation-heavy privacy-preserving protocols are in place.

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Publication info
Central Bank Digital CurrencyByzantine Fault ToleranceHigh throughput transaction processingprivacy-compatibility
Contact author(s)
lli @ zurich ibm com
bur @ zurich ibm com
adc @ zurich ibm com
kao @ zurich ibm com
alexandros filios @ ibm com
liran funaro @ il ibm com
yacov manevich @ ibm com
snatara7 @ in ibm com
Manish Sethi1 @ ibm com
2024-01-10: revised
2023-11-06: received
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      author = {Elli Androulaki and Marcus Brandenburger and Angelo De Caro and Kaoutar Elkhiyaoui and Alexandros Filios and Liran Funaro and Yacov Manevich and Senthilnathan Natarajan and Manish Sethi},
      title = {A Framework for Resilient, Transparent, High-throughput, Privacy-Enabled Central Bank Digital Currencies},
      howpublished = {Cryptology ePrint Archive, Paper 2023/1717},
      year = {2023},
      note = {\url{}},
      url = {}
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