Cos-CBDC: Design and Implementation of CBDC on Cosmos Blockchain

Abstract

With the advent of e-commerce and electronic payment systems, the use of paper currency is decreasing. Therefore, it is sufficiently predictable that most paper currencies will disappear and digital currencies will become the mainstream. This phenomenon is further accelerated by advances in blockchain technology and COVID-19. This is why the Central Bank Digital Currency (CBDC) has recently begun to attract attention. Currently, there are studies on CBDC with a blockchain-based distributed ledger. In this paper, we propose Cosmos blockchain based CBDC (Cos-CBDC) that enables communication between blockchains using Inter-Blockchain Communication (IBC) protocol to ensure interoperability. We not only analyze the requirements of Cos-CBDC but also design and implement it using Cosmos-SDK. Furthermore, we propose a Group Key Management system in Cos-CBDC. It can give different user privileges, and privacy-preserving is possible in the key generation process.