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Central Bank Digital Currency and Privacy: A Randomized Survey Experiment

Author

Listed:
  • Syngjoo Choi
  • Bongseob Kim
  • Young-Sik Kim
  • Ohik Kwon

Abstract

Privacy protection is among the key features to consider in the design of central bank digital currency (CBDC). Using a nationally representative sample of over 3,500 participants, we conduct a randomized online survey experiment to examine how the willingness to use CBDC as a means of payment varies with the degree of privacy protection and information provision on the privacy benefits of using CBDC. We find that both factors significantly increase participants' willingness to use CBDC by up to 60% when purchasing privacy-sensitive products. Our findings provide useful insights regarding the design and the public's adoption of CBDC.

Suggested Citation

  • Syngjoo Choi & Bongseob Kim & Young-Sik Kim & Ohik Kwon, 2023. "Central Bank Digital Currency and Privacy: A Randomized Survey Experiment," BIS Working Papers 1147, Bank for International Settlements.
    • Handle: RePEc:bis:biswps:1147
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    Cited by:

    1. Agur, Itai & Ari, Anil & Dell’Ariccia, Giovanni, 2025. "Bank competition and household privacy in a digital payment monopoly," Journal of Financial Economics, Elsevier, vol. 166(C).
    2. Tan, Brandon Joel, 2024. "Central bank digital currency and financial inclusion," Journal of Macroeconomics, Elsevier, vol. 81(C).
    3. Tan, Brandon Joel, 2024. "Central bank digital currency and financial inclusion," Journal of Macroeconomics, Elsevier, vol. 81(C).
    4. Fan, Rong & Walker, Todd B. & Wright, Allan, 2025. "Central bank digital currency in small open economies," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 6(2).

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    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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