Skip to content
$BTC$83,402+0.8%$ETH$2,516−0.5%$SOL$107.59−1.2%$XRP$1.37−0.3%$TON$1.38−0.3%MCap$2.77T+0.3%BTC.D60.1%Fear&Greed57 GreedGas0.47 gwei·1.1 sat/vBNews mood8% bullish
Basis Desk

New from Basis Desk: free Telegram proxies for places where Telegram is blocked or slowed down.Connect in one tap →

Regulation & Policy · 1 min read

BIS Unveils Project Aurum Phase 2 Testing Privacy Technologies for Digital Cash

The central banking hub built a prototype balancing user privacy and regulatory compliance using privacy-enhancing technologies.

Editorial oversight: Julian Mercer, Chief Editor
Neutral

At a glance Announced

What happened
The Bank for International Settlements released Project Aurum Phase 2, demonstrating a digital cash prototype that uses privacy-enhancing technologies to balance user privacy and compliance.
Why it matters
The model shows central banks can mathematically embed privacy controls directly into digital payment code instead of relying purely on administrative or institutional policies.
Who is affected
Central banks, monetary policy authorities, and digital currency payment system designers.
What's next
Central banks are expected to evaluate PET studies across broader financial use cases based on lessons outlined by the BIS.
Primary source
bis.org: Project Aurum Phase 2: exploring privacy-enhancing technologies for digital cash | Bank for International Settlements

Key points

  • BIS released Project Aurum Phase 2 exploring privacy-enhancing technologies for retail digital cash architecture.
  • The prototype establishes a middle ground between complete financial anonymity and full transaction surveillance.
  • Central banks can calibrate the software's compliance and privacy parameters to match specific jurisdictions.

The Bank for International Settlements (BIS) published findings from Project Aurum Phase 2 on Oct. 13, detailing a new prototype that explores how privacy-enhancing technologies (PETs) can resolve tensions between consumer confidentiality and compliance obligations in retail digital cash 1.

Built upon the initial Aurum codebase, the second phase demonstrates that privacy can be directly embedded into software architecture rather than depending entirely on institutional rules 1. The system employs privacy-by-design and privacy-by-default concepts to navigate between the extremes of total transaction anonymity and complete transparency 1. According to the BIS, the prototype integrates adjustable operational features, allowing central banks to tune monitoring, compliance, and privacy settings according to specific legal mandates and risk tolerances 1.

Balancing Surveillance and Anonymity

The central bank umbrella organization noted that the technical model reduces excess exposure of identity and transfer data while preserving broader system integrity 1. Project Aurum Phase 2 aims to give monetary authorities a framework to examine trade-offs inherent to sovereign digital currencies 1. The BIS indicated that central banks could expand studies of privacy-preserving techniques to other financial applications and outlined operational lessons learned for future implementations 1.

Questions this story raises

What is Project Aurum Phase 2?
It is a central banking research initiative by the BIS exploring how privacy-enhancing technologies can be incorporated into digital cash to balance data protection with financial compliance.
Does Project Aurum offer complete anonymity?
No. The prototype creates a configurable framework between full anonymity and complete transparency, allowing policymakers to adjust compliance and privacy thresholds.

Sources

  1. [1] Project Aurum Phase 2: exploring privacy-enhancing technologies for digital cash | Bank for International Settlements — bis.org, October 13, 2026

Written by Basis Desk's newsroom system from the primary sources above and machine-verified against them before publication. Market figures marked "at the time of writing" come from live exchange data. Report an error: corrections@basisdesk.news · corrections policy.

Community read
How do you read this story for the assets involved? One vote a day, anonymous.
Be the first to vote
Share X Telegram Bluesky Markdown

The Daily Brief, in your inbox at 07:00 ET

Five stories, the numbers that moved, what to watch. Three minutes. No hype, no advice, unsubscribe in one click.

Not financial advice. Basis Desk publishes information, not recommendations. Crypto assets are volatile and you can lose what you invest.