Central Bank Digital Currencies & Privacy

4 min readSep 30, 2021


Central bank digital currency (CBDC) is a catch-all phrase used to denote various proposals put forward by the central banking system. Although the term has not been well-defined, it refers to blockchain-inspired digital currencies issued by traditional finance. Despite still being in a mostly hypothetical stage, over 80% of central banks are investigating CBDCs.

A growing number of people view CBDCs as a threat to privacy. This article will outline the concern surrounding CBDCs and their potential implications. Blank Wallet serves as a counterbalance to the increasing efforts of centralized central banks by giving users privacy on the decentralized web.

A Real Privacy Threat

Blockchain technology and cryptocurrencies like bitcoin and Ethereum opened up endless possibilities. The ability to hold digital currencies on a public and immutable ledger not controlled by a centralized entity has paved the way for innovation in finance. The meteoric rise of decentralized finance (DeFi) has brought even more innovation, with platforms offering services that rival traditional finance in a trustless manner. Blank Wallet empowers users by allowing them to connect to any of these platforms.

Blockchain’s public framework comes with its own set of privacy concerns, yet has the added benefit of being non-custodial. Cryptocurrency holders are in full custody of their funds, and can use smart contracts to interact with decentralized applications (DApps) that eliminate the possibility of human error. CBDCs have caused an uproar among cryptocurrency enthusiasts as they are antithetical to the concept of decentralization. A single entity in full control of a digitally issued currency gives the entity almost unlimited power: a dystopian nightmare for those that value privacy and freedom.

The European Central Bank themselves demonstrated that privacy is at the top of the public’s list of concerns regarding CBDCs. These concerns were validated when Christine Lagarde, the president of the European Central Bank, paradoxically stated that CBDCs will support privacy without anonymity. This ultimately reveals that central banks are simply asking their customers to entrust their data to a centralized entity and hope it doesn’t overstep any boundaries. Flames were fanned even more when the Bank of England admitted to the possibility of making CBDCs programmable, meaning they could control how recipients spend their money.

The Future Of Finance

It seems apparent that central banks are charging ahead with the idea of CBDCs in a grasp for additional power and control. The real threat is the chance of trust being abused by custodial entities. An unparalleled level of centralized control makes hallmarks of dystopian fiction a real possibility today. Widespread adoption of CBDCs could usher in structures that echo China’s existing social credit system, with financial censorship being the norm for individuals and businesses alike.

CBDCs are a scary concept for many, yet serve as a reminder that the battle for privacy will continue to wage on. Supporting privacy as a fundamental human right makes friction with intrusive regulations inevitable. The future of finance lies in the continued development of parallel privacy-preserving systems that strip power from overbearing entities. Privacy solutions such as Blank Wallet continue to flourish and offer users an alternative to traditional finance.

Blank Wallet supports the right to privacy by giving users easy access to privacy-enhancing smart contracts. Cryptographic proofs let users deposit and mix their funds in a smart contract that renders them untraceable. Anyone can use Blank Wallet as their DeFi wallet of choice and interact with DApps, with an added layer of privacy. We are proud to be on the growing list of privacy solutions and will continue to fight for a decentralized future.

About Blank Wallet

Blank Wallet is the most private, non-custodial crypto wallet.

Blank Wallet is the ultimate browser extension wallet for full financial privacy, without compromise. Unlock the full potential of Web 3.0 with privacy-enhancing smart contracts at your fingertips.

As crypto sees further adoption, on-chain privacy is quickly becoming a sought-after commodity. For newcomers and enthusiasts alike, blockchain’s lack of privacy poses a real security risk that stems the growth of cryptocurrency. Blank Wallet eliminates the friction faced by millions of users by making privacy accessible for everyone, everywhere.

The wallet uses battle-tested privacy-enhancing technology to protect your financial data. Cryptographic proofs allow users to deposit and mix their funds in a smart contract that renders them untraceable. When you want to make a withdrawal, Blank Wallet creates a fresh wallet address with no links to your history on the blockchain.

Anyone can easily install Blank Wallet and start reaping the benefits. Besides full privacy functionality, Blank Wallet comes packed with an array of features that go beyond privacy for a seamless user experience. With full Web 3.0 support, the wallet allows you to connect to any DApp and harness the power of the decentralized web.

Reclaim your financial privacy. GoBlank.

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