A model for CBDC audits based on blockchain technology: Learning from the DCEP

Yi-Ran Wang, Chao-Qun Ma and Yi-Shuai Ren

Research in International Business and Finance, 2022, vol. 63, issue C

Abstract: The rapid rise of central bank digital currency (CBDC) has sparked a heated discussion on its security, supervision and audit. To this end, this study designs a CBDC system based on the prototype of digital currency electronic payment (DCEP) that can provide real-time transaction verification, with an emphasis on comprehensive supervision, privacy-preserving transactions, verifiable audits, and a constant amount of CBDC. Meanwhile, we use blockchain technology and Pederson Commitment to design architecture to prove the records' veracity and the auditing's accuracy. The results of numerical experiments show that under the proposed CBDC system, (1) the central bank can audit 50 commercial banks in roughly one second; (2) the true value of the total bonds is comparable to the amount calculated by the Pedersen Committee; (3) the operation performance of the system is superior. Therefore, the security, effectiveness and practicability of our proposed CBDC system are demonstrated.

Keywords: CBDC; DCEP; Blockchain; Pederson commitment; Supervise (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:63:y:2022:i:c:s0275531922001672

DOI: 10.1016/j.ribaf.2022.101781

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