Can Privacy and Anonymity be achieved using CBDC Permissioned Blockchain?

It all depends on the implementation.

Some challenges and risks that arise are consumer protection, privacy, taxation, cyber security, money laundering, terrorism financing, market integrity, governance and legal certainty, and if implemented correctly CBDC permissioned blockchain addresses these in a more efficient way.

The ultimate goal is to bring:

• Monetary sovereignty
• Monetary policy
• Safety and Efficiency of Payment Systems
• Financial stability
• Fair competition

Requirements:

• In order for Central banks to maintain levels of compliance imposed by regulatory jurisdictions and to avoid being de-risked AML financing of terrorism (CFT) compliance procedures need to be in place
• Reducing the amount of information visible to parties that are not involved in the transactions
• Users’ ability to access or spend CBDC balances when the intermediary is unavailable
• Applying mechanisms such as rotating public keys, zero-knowledge proofs and enclave computing.

The solution needs to keep user identities and transaction histories anonymous i.e. neither the central bank nor intermediaries other than those chosen by the user should see the data.

Each country depending on their jurisdiction might have to abide by regulation like: The General Data Protection Regulation (EU) (GDPR)

These are some points that bring out the reason why central banks will be cautions in moving forward and continue evaluating options on how to implement it in a conservative way.