BIS Research on Privacy Technology for Digital Payments Offers Innovative Viewpoint

In a recent study, the Bank for International Settlements (BIS) has identified three key stakeholders from a data protection perspective when it comes to payments: payment service providers (such as banks or payment processors), technology providers (like cloud or software companies), and end customers whose data is being processed. These stakeholders work together to ensure secure and compliant handling of personal payment data.

The BIS paper takes a unique approach, delving into the inherent tension between law enforcement and privacy advocates. It does not offer a silver bullet solution, but instead provides direction for future research.

Privacy advocates, as considered in the paper, are law-abiding individuals who are concerned about potential errors, breaches, and overreach in the future. They are one of the three most important stakeholders from a privacy perspective, alongside law enforcement and data holders.

Law enforcement, on the other hand, prefers easy access to payments data for investigations. This tension between privacy and law enforcement needs is a central theme in the paper.

The paper does not focus on a specific solution, but rather provides a framework for understanding the complexities involved in balancing these needs. The stakeholders considered in the paper for payments include users, merchants, banks, and payment providers.

The topic of discussion is privacy enhancing technologies (PETs) for payments and central bank digital currency. The paper highlights the need for ongoing research and collaboration between stakeholders to find effective PETs solutions.

While the paper does not provide immediate solutions, it offers a foundation for further discussions and research on the topic. For those interested in staying updated on industry analysis and legislative updates related to this topic, subscribing to a professional service could be beneficial.

In conclusion, the BIS paper explores the inherent tension between law enforcement and privacy evangelists, offering direction for future research and emphasising the need for collaboration between stakeholders to find effective privacy enhancing solutions for payments and central bank digital currency.

BIS Research on Privacy Technology for Digital Payments Offers Innovative Viewpoint