Nuggets is collaborating with the Bank of England on a privacy layer for the digital pound.
Payments platform Nuggets is collaborating with the Bank of England to develop a privacy and identity layer for a potential digital pound, as stated in a press release on Wednesday.
The platform, which enables decentralized identity, intends to create a private and secure system to prevent the tracking and correlation of transactions, as well as to combat fraud and money laundering.
The Bank of England (BoE) initiated a consultation on a central bank digital currency in February, expressing the likelihood of a digital pound being necessary. However, the BoE stated that a decision on issuing a digital pound would not be made until at least 2025. Privacy concerns regarding the digital pound have been previously raised by lawmakers.
Nuggets has disclosed plans to incorporate zero-knowledge proofs into its privacy layer, enabling individuals to verify their identity without sharing their data.
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Alastair Johnson, the founder and CEO of Nuggets, established the company in 2016 alongside co-founder Seema Khinda Johnson. Initially, Nuggets collaborated with the Bank of International Settlements (BIS) and the BoE on a project called Project Rosalind, which aimed to connect monetary authorities and the private sector to facilitate retail digital currency payments. As a result of this work, the BoE approached Nuggets to investigate and design the privacy layer for the digital pound, according to a company spokesperson.
Read more: UK Will Need New Laws to Accommodate Future Digital Pound, Lawyers Say
Update(July 5 15:20 UTC): Adds Nuggets background in the last paragraph.
