According to a press statement on Wednesday, payments platform Nuggets is collaborating with the Bank of England to create a privacy and identification layer for a hypothetical digital pound. The technology, which allows for decentralized identities, intends to create a private and secure system to thwart transaction tracking and correlation as well as fraud and money laundering.
A digital pound was undoubtedly needed, but the Bank of England (BoE) declared it would not decide to issue one until at least 2025 when it first started its consultation on a central bank digital currency. Legislators have previously discussed the privacy of digital currency. According to Nuggets, its privacy layer would incorporate zero-knowledge proofs, allowing users to confirm their identity without disclosing any personal information.
Alastair Johnson founded and serves as CEO of Nuggets, a company he co-founded with Seema Khinda Johnson in 2016. initiative Rosalind, which brought together monetary authorities and the business sector to promote retail digital currency payments, was the first initiative on which Nuggets collaborated with the Bank of International Settlements (BIS) and the BoE. According to a business representative, the BoE requested Nuggets to look into and develop the privacy layer for the digital pound as a result of that work.