Home What is a CBDC? What is a CBDSC? Current CBDC Needs CBDSC solutions Disclosure Why use our technology?
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What is a CBDC?

A CBDC is a term for a digital currency which is an electronic representation of a national currency issued and regulated directly by a central bank. A CBDC represents an advancement in technology and an opportunity for humanity to become more efficient. Most central banks in the world are in varying stages of mapping out how they will address what CBDCs will mean for monetary policy and how they will adopt CBDCs.

One issue identified by the BIS (Bank for International Settlements) for global CBDC adoption is currency substitution. One cause of currency substitution is a lack of faith in a domestic currency due to domestic conditions.

An example of currency substitution is the common use of the U.S. fiat dollar as an alternate currency by foreign countries with greater domestic currency volatility. A successful and efficient CBDC launched by one central bank may be adopted by a foreign country if cross-border availability exists and the cost benefit of using the foreign CBDC outweighs the utility and volatility of the domestic currency. Such substitution erodes the ability of the foreign country to drive domestic monetary policy. CBDCs could be designed by issuing central banks to preclude or limit their use outside the issuing country, or wallets in recipient countries could be designed to allow local authorities to implement certain capital flow management measures.

What is a CBDSC?

Central Bank Digital Secure Coin (CBDSC) is a new technology that acts as a stablecoin alternative for governments and central banks that want to maintain a particular monetary policy on top of their CBDC. The CBDSC is developed by Atom foundation, a private company based in California US that focuses on liquidity solutions on the blockchain.

Current CBDC Needs

Most CBDC projects are focused on domestic needs. It is recognized that improvements to cross-border payment settlements offer benefits to the global economy. Current issues in cross-border payments include: fragmented and truncated data formats, complex processing of compliance checks, limited institution operating hours, legacy technology platforms, long transaction chains of custody, funding costs, and weak industry competition. Potential benefits of CBDC implementation include: less intermediaries, enhanced efficiency, enhanced integration, enhanced technical compatibility, enhanced safety, and the mitigation of cross-border/cross-currency fluctuation risk.

CBDSC solutions
Protection 01
Maintain control

The CBDSC has a patent-pending regulation layer that is flexible and programmatic through voting or consensus by the public or by authorized individuals and groups of people set by the issuer. Authorization can be given with some expiry date to align with elected official terms in office and allow for the peaceful transfer of power. Authorization can also be revoked if needed by majority voting.

Volatility protection

Any CBDC built based on the current stablecoin concept which is pegged to a fiat currency is exposed to volatility for different reasons. Central banks polled by the BIS cited volatility as a major consideration when implementing a CBDC.

For example, it is reasonable to assume with the acceptance of digital currencies that the conversion rate and the trading volume between digital assets may increase as well. This gives the public one click access for such trading and they may panic during catastrophic events (or a bear market) and pay over price to avoid losses and move into a stable currency, or the other way around when attempting investment opportunities such as bitcoin are available during a bull market. Such volatility may be disruptive to monetary policy.

The CBDSC includes a patent-pending solution with a built-in fluctuation freeze that removes any possibility of volatility due to such events, not even 0.001%.

The solution allows the CBDSC to check in real time the current face value of non-digital currency and freeze the value of the CBDC based on any fluctuations. Once the CBDC is frozen, it is impossible for the CBDSC to move unless the received face value is an equal amount.

For example, if the total CBDSC is $100, holders can send from their wallet such an amount in exchange for $100 worth of Euro, or to an invoice worth $100 for goods and services. If the counterparty sends more or less than the $100 face value, the smart contract automatically authorizes an equal payment with the remaining amount returned to whichever party belongs. By limiting trading to the same face value, there is no room to create volatility and the CBDSC forever is determined by the issuer’s monetary policy and not by unexpected events.

aLet’s say Bob wants to trade $110 of USD CBDSC in exchange for $100 worth of Euro CBDSC. The smart contract allows a swap of $100 against $100 while the remaining $10 returns to Bob’s wallet.
bAlternatively if Bob wants to send $110 against a request of more than $110 (since the rest may be paid with a different payment method or currencies), the smart contract allows with the remaining portion remaining pending.
Black swan event protection

When an unexpected catastrophe happens (black swan event), the public may panic which causes a run on the bank scenario and decline of currency value. Issuers utilizing the CBDSC regulation layer will not have to worry about this risk because the monetary policy authority sets rules to govern the trading.

Cheaper and faster cross-border transactions, all else equal, might increase risks for runs on both domestic banking sectors and currencies.

For example, issuers can limit the amount of spending for a certain time frame or set specific event triggers and conditions. These can even limit certain types of spending like selling into a policy banned currency.

Recover lost funds

In situations where holders may lose access to their wallets or in case that the issuer needs to take action and seize funds (for example in case of AML non-compliance or a court order), the CBDSC offers a regulation layer solution. The regulation layer allows a central bank (or any authorized issuer) to recover funds either manually or automatically. If the recovery takes place manually, the issuer can order funds to move from any wallet into any different wallet. If the recovery takes place automatically, the legal holders of the old wallet can trigger a function at any time (from old wallet or new one), to move funds from old wallet to a new wallet, as long as those two wallets are whitelisted under the same holder.

Prevent Bad actors

In order to prevent financial abuse, issuers can limit their CBDSC to whitelisted wallets and authorized providers. For example, issuers can maintain a blacklist of dark web providers which the CBDSC is never allowed to be utilized or traded by. Later if providers become blacklisted, the issuer can lock any CBDSC from their wallets including moving it out as part of court order.

Privacy and performance

Issuers can utilize the CBDSC regulation layer to set special rules which can apply to all holders, sets of holders, or to individuals. All the rules are kept in the regulation layer, so even when set or executed, privacy is maintained. For example; if funds are frozen on some wallets and blocked from moving out, the public cannot see the reason for such blocks. The issuer of the CBDSC may choose during the launch what notes will be seen on the blockchain and by whom.

KYC/AML based on zero-knowledge proof

CBDC issuers may require holders to perform KYC/AML. Most central banks cited Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) as a concern for the implementation of a CBDC. The CBDSC allows the issuer to choose if specific holders or all holders are required to complete KYC/AML before the funds move out of a wallet. The CBDSC can also allow the issuer to set a time (every year for example) that holders must repeat the KYC/AML to avoid their funds being locked in their wallets. All the KYC/AML information would remain under the jurisdiction and control of the issuer while the CBDSC interacts with information based on a zero knowledge proof therefore, this information is not visible to the general public or to the CBDSC.

Hacking protection

The crypto industry suffers from loss of funds due to hacking, which usually hurts those less sophisticated. The typical reason is holders were not careful enough to hide their private key or recovery phrase. Such human vulnerability can cause many families and businesses to go bankrupt when CBDCs become commonplace.

Wallets with CBDSC enjoy full hacking protection, because even if the private key and the recovery phrase are compromised, the CBDSC cannot move out of the wallets unless it has been swapped against the same face value order or sent as a gift order. Plus, gift orders can be reversed back to the original wallet by the issuer or by a dispute trigger. So this is not to say that hacking will stop or that users will change behavior because hackers will continue to improve and CBDSC protects all holders.

Taxation 02
Tax collection

Issuers can apply from time to time different rules including the seizure of tax funds by freezing it on the wallet or moving out in the event of a court ordered seizure.

Monitor gifts

Many people give funds to friends and family which is difficult to monitor and tax as income if needed. The CBDSC allows holders to move funds without receiving any goods and services or other currency with the same face value, as long as the CBDSC sends against a request or gift order with the same face value.

aBob wants to send a gift of $5,000 CBDSC to Mary which is a taxable event in their country.
bMary sends Bob a $5,000 gift request or alternatively Bob creates a gift order
cBecause the CBDSC requires an equal face value on the other side or a gift request, this transaction is recorded if needed as taxifiably codable on the blockchain
dAlternatively if Bob wants to send $5,000 against a request of more than $5,000 (since the rest may be paid with a different payment method), the smart contract allows with the remaining portion remaining pending.
Flexibility 03
Unlimited flexibility for new capabilities

The CBDSC regulation layer protocol allows issuers to control the CBDC in countless ways even after the digital currency is distributed to the public. The flexibility of the regulation layer protects the ability to update the CBDC governance policy without the need to do a recall or reissuance of a new digital currency version merely to extend functionality or execute new policy.

Overcome inflation / deflation

All countries are exposed to inflation and deflation. Some countries allow the market to lead while other countries prefer to apply their own policy. The CBDSC allows the issuer to apply any policy on top of the CBDC face value by driving it in from market power (using an index or non-digital currency face value) or by applying manual or automatic changes to the CBDC face value. Changes can either alter the value of the CBDSC from time to time triggered by events (for example instead of $1 the CBDSC will be worth X% of $1) or by increasing / decreasing the CBDSC face value over a certain period (for example every day, or every mined block on a blockchain).

Encourage spending

Issuers wanting to encourage their CBDC holders to spend funds to support economic growth or achieve other goals, can set in the CBDSC regulation layer automatic rules that benefit holders who trigger these rules with tax credits or with more airdropped CBDSC offering a direct subsidy utility.

Secure Current CBDC

Some issuers have already issued their CBDC. Therefore, to receive the CBDSC benefits, they can secure the current CBDC and offer CBDSC.

Ability to mint and burn

Issuers have the ability to mint and burn CBDSC in line with monetary policy which may be tied programmatically to events. For example, minting of new CBDSC may be tied to an official consumer price index or the lending ratio for approved government banks while also burning when loans to these banks are paid.


Issuers such as banks can have branded CBDSC with built-in functions, such CBDSC can follow (or not) the face value of the central bank’s CBDC and it can have its own rules while still complying with the central bank’s monetary policy on-chain.

Settlement alternative

When banks use the CBDSC as a way of payment they don’t need a settlement system. Instead one side can send funds and the other side can send his funds at a later time. Once a transaction takes place the smart contract will swap exactly the same face value at the time of transaction, and any amount that is above the counterparty will be returned to whichever side it belongs to.

Provide a spending statement

While privacy is important, levels of transparency can help prevent financial crime and lessen agency oversight budgets to combat financial crime. It is possible to set a “spending threshold” event for digital wallets which will trigger a spending statement report to be sent to the issuer agency. Such information is not available to the public.

Border limitations

Issuers can set in the CBDSC regulation layer rules to prevent the use of their CBDC outside of their country (to restrict the outflow of capital) or prevent the CBDC to be sold to any holders that associate with blacklisted countries such as North Korea.

Blockchain flexibility

The CBDSC can be deployed on any type of blockchain with smart contracts supported, and it can even include decentralized cross-chain if needed.

Decentralized cross-chain

The CBDSC can be supported by another patented technology that Atom Foundation created known as SmartSwap which allows one-click slippage free cross-CBDC settlement that will invariably be needed for international commerce, remittance and inter-government finance. Factoring in the ability to do so early in the development cycle will give the adopter a substantial market advantage.


CBDSC drives value by pegging to a currency index or other pricing source. Therefore, by many countries’ standards, it is considered a derivative security limited to be used for retail users only by regulated issuers such as banks or registered companies. This means governments, those with bank licenses, public companies, etc. will be the only issuers available to launch a CBDSC.

Why use our technology? CBDSC in Action CBDSC structure

Over the last few years, the Atom Foundation has developed and filed global patents for this unique technology. The CBDSC technology compared to current stablecoins is equivalent to comparing smartphones vs telegraph. This powerful and heavily developed technology can resolve many of the issues CBDCs will be facing during initial rollout when operating side by side with traditional fiat and existing electronic money.

Atom Foundation understands that government’ CBDCs if done properly and safely present a major value to the economy and to the blockchain industry's future. Therefore, Atom Foundation offers issuers a lifetime license with the best technology in the market at no cost.

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