Central Bank Digital Currency and Privacy: A Randomized Survey Experiment

Perhaps unsurprising, but interesting none-the-less.

This study considers designs of central bank digital currency (CBDC) concerning privacy protection and data governance. We conduct a randomised survey experiment and find that privacy protection is among the key features to consider in the design of CBDC.

The main findings of the paper are as follows. First, the privacy-preserving variations of the CBDC design have significant effects on the willingness to use CBDC when respondents purchase privacy-sensitive products (eg psychiatric services, adult products). Second, the willingness to use CBDC substantially increases with the provision of information about the privacy benefits of using it. Finally, these effects vary with respondents' trust in public or private institutions with regard to privacy protection and their demographic characteristics.