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1 December 2025 Preprint DAI-2511

Privacy-Preserving Financial Surveillance: An Architectural Framework for CBDC Implementation

Murad Farzulla

Abstract

Central bank digital currencies create fundamental tensions between regulatory surveillance requirements and individual privacy rights. This paper proposes an architectural framework leveraging zero-knowledge proofs and privacy-preserving computation to enable AML/CFT compliance without exposing transaction-level data.

Suggested Citation

Murad Farzulla (2025). Privacy-Preserving Financial Surveillance: An Architectural Framework for CBDC Implementation. Farzulla Research Working Paper DAI-2511. DOI: 10.5281/zenodo.17917938

BibTeX

@misc{farzulla2025cbdcprivacy,
  author = {Farzulla, Murad},
  title = {Privacy-Preserving Financial Surveillance: An Architectural Framework for CBDC Implementation},
  year = {2025},
  howpublished = {Farzulla Research Working Paper DAI-2511},
  doi = {10.5281/zenodo.17917938},
  url = {https://farzulla.org/papers/cbdc-privacy}
}

Topics

Financial Markets Cryptocurrency Privacy & Cryptography