Payment and Settlement Systems Report Supplement "Privacy Enhancing Technologies: Payments and Financial Services in the Digital Society"

Payment and Settlement Systems Report Supplement “Privacy Enhancing Technologies: Payments and Financial Services in the Digital Society”

20 January 2023
Cost and Settlement Programs Directorate
Financial institution of Japan


In recent times, companies in Japan and overseas have created many providers via the gathering of buyer knowledge, and the usage of such knowledge has turn into an essential motivation for enterprise improvement within the area of funds and settlements, in addition to monetary providers. On the identical time, the significance of stopping cash laundering and combating the financing of terrorism (AML/CFT) for funds is more and more acknowledged and worldwide debate continues. The usage of knowledge is turning into extra essential to advance AML/CFT and set up an efficient mechanism. On this framework, applied sciences are developed that can contribute to the safety of the privateness of customers whereas utilizing their knowledge for job creation and robustness of transactions.

Specifically, there are ideas anonymizationthe place knowledge is altered so people can’t be recognized and differential privateness, the place the potential for identification from evaluation outcomes is suppressed by including noise or different means. Different strategies embrace: safe calculationThe evaluation was achieved by conserving the information confidential and trusted execution environmentst, {hardware} know-how is used to carry out computations in a safe space the place privateness is protected. As well as, unified studyingIt is usually examined that the data of the customers in every celebration’s knowledge is saved confidential from different events and that they cooperate with them to carry out machine studying. As a privacy-related idea, self-sovereign identification additionally attracts consideration.

Discussions about privacy-enhancing applied sciences and their software to funds and monetary providers could have implications for Central Financial institution Digital Foreign money work being achieved in lots of nations, together with Japan.

The Financial institution of Japan is steadily shifting ahead with experimentation and exploration of institutional preparations to make sure the steadiness and effectivity of all the cost and settlement system and to reply appropriately to varied adjustments within the setting sooner or later. As a part of its analysis into company rules, the Financial institution will proceed to discover and study privateness safety for digital currencies with a variety of stakeholders.

do not discover

This doc is an English translation of the Japanese unique printed on September 29, 2022. To request permission when duplicating or copying the contents of this report for industrial functions, please contact the Cost and Settlement Programs Division upfront. Please cite the supply when reproducing or copying the content material of this report.


Cost and Settlement Programs Directorate

E-mail :

#Cost #Settlement #Programs #Report #Complement #Privateness #Enhancing #Applied sciences #Funds #Monetary #Providers #Digital #Society

Leave a Comment

Your email address will not be published. Required fields are marked *