CBDC and Cryptocurrency

Advanced Project
3 min readMar 26, 2021


Central banks have faced a big hurdle while trying to create CBDC (Central Bank Digital Currency). There are times when you need to use CBDC even offline due to power outages or communication loss. However, there is still no technology that can verify the authenticity of CBDC offline. A few patents and papers have been published, but only good people are considered, so they are not workable solutions to deal with counterfeiting by the not-so-good people.

There is a technical way to verify the authenticity of CBDC online. Bitcoin has already introduced the technology. Numbers that do not match the various numbers recorded on the blockchain are evidence of counterfeit bills, and remittances can be made only if you have the secret key of the real bill that can be verified on the blockchain. Blockchain records are transparent, so anyone can check them immediately at any time.

Problems can occur when CBDC is written offline. The possibility of circulation of counterfeit money is feared. The development of technology to check whether digital currency is genuine or counterfeit offline is a prerequisite for issuing CBDC.

If you don’t know the problem, there’s no solution, but if you know the problem, it’s just a matter of time and you can find a solution someday. What is urgent now is the development of technologies that can protect the Achilles tendon of CBDC. Whether using zero-knowledge proofs, reversible information hiding, or using entirely new technology, a solution will come out sooner or later. Anyway, it can be seen in currency that analog technology is not inferior to digital technology and is complementary to each other.

In the AUC project, we propose and operate a blockchain-based director’s solution (Director’s DBMS) to the settlement approval network, RTGS REAL-TIME GROSSING SETTLEMENT, the national central bank’s settlement system, and NEFT NATIONAL ELECTRONIC FUND TRANSFER for personal transactions.

NEFT for remittance processing of an inter-personal account adjusts a small number of funds in accordance with a settlement cycle. Since the management agency is each bank, multiple blockchain DBMS is used as a system for multilevel management of interbank settlement data for the purpose of settlement, management, and audit, and to preserve and strengthen the transparency of existing director management. In the case of RTGS managed by the national central bank, transactions are made into a system for high-value transactions.

AUC’s CBDC architecture

The central bank issuing CBDC as a real-time transfer system issues the central digital currency between each bank, which is the operator of CBDC. AUC supports the proposal and operation of the ledger system as a blockchain DBMS for the purpose of redundancy management of the ledger of operational data.

Additionally, a monitoring environment is provided for entire payment and remittance transactions to manage and supervise central digital currency operations through a comparison of payment history and total currency issued by the central bank.

We proposed a test-type CBDC system for the National Payment Switch business proposal with one of the banks in Africa in 2019 and designed AUC’s mobile payment platform, IC card system, payment POS, ATM, deposit, and remittance. Currently, this project has been suspended due to the local circumstances of Covid19.

We believe that the means of expressing the value of digitized assets are cryptocurrency and can be more mutually activated with CBDC.