Paper 2025/1639

Rayls: A Novel Design for CBDCs

Abstract

In this work, we introduce Rayls, a new central bank digital currency (CBDC) design that provides privacy, high performance, and regulatory compliance. In our construction, commercial banks each run their own (private) ledger and are connected to an underlying decentralized programmable blockchain via a relayer. We also introduce a novel protocol that allows for efficient anonymous transactions between banks, which we call 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. We achieve high performance in cross-bank settlement via the use of ZK-SNARKs and 'double' batching. Concretely, 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.