UWSpace is currently experiencing technical difficulties resulting from its recent migration to a new version of its software. These technical issues are not affecting the submission and browse features of the site. UWaterloo community members may continue submitting items to UWSpace. We apologize for the inconvenience, and are actively working to resolve these technical issues.
 

Analyzing Issues of Privacy and Offline Transactions In Central Bank Digital Currencies

Thumbnail Image

Files

Lee_Michael.pdf (528.74 KB)

Date

2023-12-08

Authors

Lee, Michael

Journal Title

Journal ISSN

Volume Title

Publisher

University of Waterloo

Abstract

With the popularity of cryptocurrencies like bitcoin and Ethereum, many central banks have begun to look into issuing their own digital currency. For many central banks, the goal of a central bank digital currency (CBDC) is to provide a user experience similar to paper money, but fully digital. The central bank also plays an important role in the system, namely acting as a source of trust. This source of trust is an important differentiator, as it incentivizes the use of alternative technologies to confirm transactions, rather than using inefficient consensus protocols such as a proof-of-work blockchain. In order to act as a true paper money alternative, two of the biggest hurdles that need to be overcome are privacy and offline transactions. In this thesis, we will examine these issues in more detail, discussing what problems they pose and what (if any) solutions have been presented in the existing literature. Additionally, we will be offering our own solutions, using hash chains to provide user privacy, and presenting a prototype CBDC system for offline transactions.

Description

Keywords

CBDC, central bank digital currency, blockchain, cryptocurrency, XRP, XRPL, privacy, offline transaction

LC Keywords

Citation

URI

http://hdl.handle.net/10012/20143

Collections

Theses
Electrical and Computer Engineering