Project Aurum Phase 2, with the HKMA, shows that digital cash can offer cash-like privacy through zero-knowledge proofs and other privacy tech while still meeting anti-money laundering and fraud rules.

The Bank for International Settlements Innovation Hub publication, dated 13 October 2026, describes a prototype built on the existing Aurum codebase. It applies privacy-by-design and privacy-by-default principles, aiming for a balance between complete anonymity and full transaction transparency, with customisable functions for compliance and operations. The report says the design reduces unnecessary exposure of personal and transaction data while maintaining compliance and system integrity, and that parameters can be calibrated to different policy choices and risk appetites. It suggests further PET studies across other use cases.

✨ AI summary of the linked source — not editorial content.

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• Zero-Knowledge
• Money laundering