If Digital Currency Tracks My Spending, What’s the CBDC Privacy Solution?

With the introduction of CBDC (Central Bank Digital Currency), concerns about surveillance of personal transactions are rising. This post explores how to prevent "monitored consumption" and protect user privacy in the age of digital currency.     📷 Visual: CBDC Security and Privacy  Balancing Digital Wallets and Privacy Source: Freepik (royalty-free) 1. How Well Can Personal Data Be Protected? Since CBDC allows central banks to access transaction data, privacy concerns are inevitable. However, the following technologies can address this: Pseudonymization: Users are identified with anonymous IDs; real names are only accessed when necessary Tiered Privacy: Small payments can remain anonymous; larger ones require identification     2. The Role of Zero-Knowledge Proof (ZKP) ZKP is a cryptographic method that proves a transaction occurred without revealing its contents. This allows you to validate spendin...