Privacy-Preserving Financial Surveillance: An Architectural Framework for CBDC Implementation
Abstract
Central bank digital currencies create fundamental tensions between regulatory surveillance requirements and individual privacy rights. This paper proposes an architectural framework leveraging zero-knowledge proofs and privacy-preserving computation to enable AML/CFT compliance without exposing transaction-level data.
Suggested citation
Murad Farzulla, Andrew Maksakov (2025). Privacy-Preserving Financial Surveillance: An Architectural Framework for CBDC Implementation. Dissensus Working Paper DAI-2511. DOI: 10.5281/zenodo.17917938
Methodology
Zero-knowledge proofs
Mechanism design
Privacy-preserving computation
Topics
Financial Markets
Cryptocurrency
Privacy & Cryptography