COVID-19 Challenges the Existence of Paper Money: CipherTrace Launches Initiative to Help Central Banks Issue Secure and Private Digital Currencies
CipherTrace is helping central banks develop systems to issue secure, private digital currencies that prevent money laundering, terrorist financing, and sanction evasion.
MENLO PARK, CALIF., May 12, 2020–CipherTrace announces the launch of their CBDC initiative, which will ensure that Central Bank Digital Currencies (CBDCs) are secure, private, and clean of illicit finance, including money laundering, terrorist financing, and sanction evasion.
Through this initiative, CipherTrace will provide central banks with customizable mechanisms to enable digital currencies that can be trusted by governments, commercial banks, and consumers. These mechanisms will include best-in-class security, privacy-by-default design, and the ability to easily support a country’s chosen blockchain with compliance monitoring and money laundering controls.
Dave Jevans, CEO of CipherTrace, said, “In a post-COVID-19 world, digital currencies provide an opportunity to replace the exchange at grocery stores, and hundreds of other kinds of consumer businesses, of paper and metal coins from person to person with a virtual currency. Central banks must digitize their currencies to avoid virus contamination, reduce fraud, detect tax evasion, and protect against money laundering while managing inflation and competing against the digital currencies of privately issued stablecoins and other sovereign nation digital currencies.”
The rise of company-issued stablecoins and government-backed digital currencies like China’s digital yuan has created a sense of urgency among many nations to develop their own CBDCs. The EU and an estimated 38 countries, including China, UK, France, India, Sweden and Russia, are currently piloting or considering CBDCs. CipherTrace predicts that most central banks will provide a digital currency to their citizens in the next 5 years. CipherTrace’s CBDC initiative will help central banks to implement CBDCs in a manner that prevents illicit finance, protects personal privacy, and institutes the highest levels of security.
As the world’s leading cryptocurrency and blockchain analytics firm, CipherTrace is well-equipped to deliver on a CBDC solution that is secure, private, and clean. CipherTrace Inspector is the world’s most sophisticated tracing tool with the most comprehensive data attribution and token coverage. Countries around the globe have leveraged CipherTrace Inspector to power their investigations. CipherTrace has built extensive relationships with government groups and departments needed to make real progress on CBDC applications. CipherTrace’s quarterly Cryptocurrency AML Reports have been instrumental in informing financial institutions and regulators on the evolving compliance needs sparked by cryptocurrencies, and the company is recognized as a privacy advocate.
“As the digital economy becomes increasingly synonymous with the global economy, the need to modernize our financial system is that much more palpable,” said Dave Jevans. “Due to the accessibility and efficiency enabled by transacting in digital currencies, it’s only a matter of time before every country will be developing a CBDC. We want to ensure that these currencies are secure, private, and clean so that the transition to CBDCs is seamless for governments, banks, businesses, and individuals.”
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CipherTrace, the industry-leading cryptocurrency intelligence company, protects financial institutions from crypto laundering risk and is helping to grow the crypto economy by making virtual assets trusted by governments and safe for mass adoption. CipherTrace delivers the world’s most comprehensive cryptocurrency intelligence to detect money laundering, inform law enforcement investigations, and enable regulatory supervision. CipherTrace founders are dedicated to protecting consumer privacy, while enabling protection. Created to develop digital currency and blockchain tracing and security, CipherTrace has visibility into 87% of global trading volume with hundreds of millions of attribution data points and traces more than 800 virtual assets, including BTC, BCH, ETH, ERC-20, Tether, and LTC tokens. The company was founded in 2015 by experienced Silicon Valley entrepreneurs with deep expertise in cybersecurity, eCrime, payments, banking, encryption, and virtual currencies. The US Department of Homeland Security Science and Technology (S&T) and DARPA initially funded CipherTrace. For more information, visit http://www.CipherTrace.com or follow us on Twitter @CipherTrace.