The Bank for International Settlements releases second phase report on its digital cash project Aurum, exploring privacy-enhancing technologies

The Bank for International Settlements Innovation Center released the second phase report of the Aurum project on October 13, 2026, which discusses the application of privacy-enhancing technologies in the digital cash field. This stage of work is to build a digital cash prototype with privacy protection functions based on Aurum's existing code base, aiming to help policymakers understand how relevant technologies resolve the contradiction between privacy and compliance of digital cash. The prototype follows the principles of privacy by design and privacy by default, presenting a solution between full anonymity and full transparency in transactions, and has customizable features to meet business needs at the compliance and operational levels. Project results show that privacy can be integrated into the design of digital cash through technical means, rather than relying solely on institutional guarantees, thereby reducing unnecessary exposure of personal and transaction data while maintaining compliance and system integrity. Privacy protection design helps central banks and policymakers grasp the considerations and trade-offs.