The Bank for International Settlements (BIS) said in its Project Aurum Phase 2 report that digital cash can offer cash-like privacy, but the technology is not yet production-ready due to risks such as bank data breaches. The report found that compromising one bank may expose its customer data but would not affect identities of customers from other counterparties. The BIS also noted that Brazil published the source code of its CBDC pilot in 2023, within which surveillance mechanisms allowing the central bank to freeze or reduce user funds were detected. In January 2025, US President Donald Trump banned federal agencies from issuing a central bank digital currency, citing financial stability and privacy concerns.
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