David Chaum is a crypto professional who has been investing in the sector since 1989, so long before Bitcoin. He is the CEO of Elixxir, a company that develops networks that prioritize user data privacy. Recently, he gave an exclusive interview in which he talked about a special central bank digital currency. Here is the project that David Chaum recently presented.
A digital currency that censorship could not influence
More and more governments are embarking on the development of CBDCs. But users find it difficult to trust due to lack of privacy. Cointelegraph said in a chirp : “Before Bitcoin, there was David Chaum. Risking his life in prison, the “godfather of cryptocurrencies” laid the foundations that would inspire the creation of the world’s first cryptocurrency“. It seems that Chaum wants to settle down a CBDC that prioritizes privacy. The new digital currency should be “inalienably private», with no possibility of being able to counterfeit it.
That said, under a project called “TourbillonChaum had demonstrated the effectiveness of a CBDC to ensure privacy. Indeed, he has implemented a cryptographic protocol which demonstrates that a CBDC can especially protect privacy. The digital currency could also resist censorship, be scalable and remain compatible with DeFi blockchains.
A CBDC that makes it difficult to withdraw large amounts
David Chaum thinks that electronic payment systems shouldn’t facilitate the withdrawal of large sums of money. He stated: “These systems are supposed to make it very difficult for someone to raise enough money and use it for nefarious purposes, such as hiring a hit man without being noticed.“.
“You can withdraw $500 every day with your ATM card, but you can’t go into a bank and withdraw $1,000,000 in cash, that’s people’s privacysaid David Chaum.
The CEO of Elixxir is thinking about a CBDC system where the user will demonstrate that they know their private key without revealing it. He explains that this would be possible with inalienable keys which constitute a new type of private key. David Chaum has indicated that inalienable keys will be of great use in several areas outside of finance. He stated: “They can represent that a user paid tuition this year or that users graduated with honors“.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to convey information related to this ecosystem with my pen.