The Bank for International Settlements (BIS) has proposed a new architecture for retail central bank digital currencies (CBDCs), suggesting a hybrid model. In this setup, central banks would handle issuance and governance, while commercial banks manage consumer services. The design aims to enhance privacy by separating transaction data from user identities.

Despite these privacy assurances, CBDCs face criticism. The Bank of Canada paused its CBDC plans due to public disinterest. In the U.S., attorney John Deaton criticized CBDCs, citing threats to personal freedom. Meanwhile, European MP Sarah Knafo urged the EU to ditch CBDCs in favor of Bitcoin, warning of potential authoritarianism.