Paper 2025/1638

Rayls II: Fast, Private, and Compliant CBDCs

Abstract

In this work, we introduce an upgrade to Rayls, a novel central bank digital currency (CBDC) design that provides privacy, high performance, and regulatory compliance. In the Rayls construction, commercial banks each run their own (private) ledger and are connected to an underlying decentralized programmable blockchain via a relayer. We introduce an improved and more efficient protocol that allows for efficient anonymous transactions between banks, which is (still) called Enygma. Our design is 'quantum-private' as a quantum adversary is not able to infer any information (i.e., payer, payee, amounts) about the transactions that take place in the network. One of the main improvements of this work is that the design is now completely quantum-secure except for the current use of ZK-SNARKs. We note, however, that this is modular and can simply be updated as desired. We achieve high performance in cross-bank settlement via the use of ZK-SNARKs and 'double' batching and an optimized ZK implementation, with a prover time three times faster than the initial implementation and a cheaper on-chain verifier. Our transactions consist of a set of commitments and a zero-knowledge proof. As a result, each transaction can pay more than 1 bank at once and, secondly, each of these individual commitments can contain aggregated transfers from multiple users. For example, bank A transfers $1M to a different bank B and that amount is actually a sum of multiple users making transfers to bank B. Commercial banks can then enforce regulatory rules locally within their ledgers. Our system is in production with one of the largest clearing houses in the world and is currently being explored in a CBDC pilot.