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@article{204802,
        author = {Shubhangi Santosh Kekate and Dr. Syed Sumera Ali and A. T. Jadhav and Dr. D. L. Bhuyar},
        title = {A Review of Privacy-Preserving Blockchain Architectures for Central Bank Digital Currency Systems},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {13},
        number = {1},
        pages = {4477-4484},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=204802},
        abstract = {The rapid growth of digital financial systems and the emergence of Central Bank Digital Currencies (CBDCs) have introduced critical challenges related to user privacy, transaction security, and regulatory compliance. While blockchain technology offers transparency and decentralization, it often conflicts with the privacy requirements of financial systems. This paper presents a comprehensive review of privacy-preserving blockchain architectures applicable to CBDC systems, focusing on techniques such as zero-knowledge proofs, secure multi-party computation, and advanced consensus mechanisms.
The study analyzes existing research works to evaluate their effectiveness in balancing privacy, scalability, and performance within centralized monetary frameworks. Key findings highlight that although several architectures improve transactional privacy, they often introduce trade-offs in terms of computational complexity, latency, and system scalability. Furthermore, current solutions lack standardization and struggle to meet regulatory requirements such as auditability and traceability.
This review identifies significant research gaps, including the need for efficient consensus protocols, interoperability among CBDC platforms, and practical deployment frameworks. To address these challenges, the paper proposes a conceptual approach based on a Proof-by-Approval consensus mechanism, extending Proof-of-Reputation to enhance decentralization and security while acknowledging its limitations in performance and implementation complexity.
Finally, the paper outlines future research directions toward developing scalable, energy-efficient, and regulation-compliant privacy-preserving blockchain systems for next-generation digital currencies.},
        keywords = {Privacy-Preserving, Decentralized Platform, Banking Transactions, Blockchain Technology, Unspent Transaction Outputs (UTXOs), Data Security, Cryptographic Techniques, Financial Institutions, Transaction Transparency, Digital Banking Solutions, etc.},
        month = {June},
        }