**[BIS Innovation Hub Releases Project Aurum Phase 2 Report, Exploring Privacy-Enhancing Technologies for Digital Cash]** Golden Finance reported on October 13 that the Bank for International Settlements (BIS) Innovation Hub officially released Project Aurum Phase 2. This project builds a privacy-protecting digital cash prototype based on the existing Aurum codebase, aiming to help central banks and policymakers understand how privacy-enhancing technologies (PETs) can address the dilemma between privacy protection and regulatory compliance in digital cash. The prototype adopts the principles of "privacy by design" and "privacy by default," seeking a balance between complete anonymity and full transparency, while offering customizable features to meet compliance and operational needs. The project emphasizes that privacy protection should be embedded into the design of digital cash through technological means, rather than relying solely on institutional safeguards, while minimizing unnecessary exposure of personal and transaction data. The report highlights that related functionalities can be flexibly adjusted based on different policy orientations and risk preferences, providing a reference for central banks in formulating digital payment policies. BIS also recommends that central banks further explore the potential applications of PETs in broader scenarios.