3 research outputs found
A Scalable Architecture for Electronic Payments
We present a scalable architecture for electronic retail payments via central
bank digital currency and offer a solution to the perceived conflict between
robust regulatory oversight and consumer affordances such as privacy and
control. Our architecture combines existing work in payment systems and digital
currency with a new approach to digital asset design for managing unforgeable,
stateful, and oblivious assets without relying on either a central authority or
a monolithic consensus system. Regulated financial institutions have a role in
every transaction, and the consumer affordances are achieved through the use of
non-custodial wallets that unlink the sender from the recipient in the
transaction channel. This approach is fully compatible with the existing
two-tiered banking system and can complement and extend the roles of existing
money services businesses and asset custodians.Comment: 24 pages, 7 figures, 2 table