Mu Changchun: Systematically Enhance Currency Bridge Technology from Three Aspects

ChainCatcher News, Mu Changchun, director of the Digital Currency Research Institute of the People's Bank of China, stated at the Sibos 2024 conference on October 23, titled "Multilateral Central Bank Digital Currency Bridge: Connecting Global Economies with Central Bank Digital Currencies," that the Digital Currency Research Institute will systematically enhance the currency bridge technology in three aspects:

1. Privacy protection mechanism. In the future, privacy protection technology based on zero-knowledge proofs will be developed, with plans to launch in 2025. The design of zero-knowledge proofs can demonstrate the compliance of both parties in a transaction and the sufficiency of funds without disclosing details such as account balances or transaction timestamps.

2. System development and operation maintenance system. The currency bridge system will be deployed in a decentralized manner, with each party independently maintaining operations.

3. Openness and transparency of the currency bridge platform. To strengthen trust among participants, the source code of the currency bridge is currently fully transparent to all participating central banks. Next, the Digital Currency Research Institute plans to promote joint development, code delivery, code review, continuous integration, continuous delivery, and continuous deployment using the development and operation maintenance system. At the same time, the Digital Currency Research Institute will collaborate with the Bank for International Settlements to hire service providers for third-party code reviews and open-source assessment preparations to achieve full open-source status.