A Korean survey involving 3,500 people found that privacy features heavily impact the adoption of central bank digital currency (CBDC). That’s according to a report from the Bank for International Settlements (BIS).
Cash is considered anonymous because there’s no record of transactions. In contrast, because CBDCs are digital, there’s a record of all payments. The BIS paper acknowledges that anti money laundering and other compliance features of CBDC might prove problematic for users. “There is a possibility of privacy being invaded to a degree that exceeds what consumers are willing to tolerate,” the paper states.
On the one hand, it seems obvious that the privacy design of a CBDC will impact adoption. But there hasn’t been much research about specifics. Rather than asking people whether privacy is important, such as an early EU survey for the digital euro, the Korean research split up the group and asked them targeted questions about specific designs.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
