Fintech Notes

Central Bank Digital Currency Data Use and Privacy Protection

Author/Editor:

Kieran P Murphy ; Tao Sun ; Yong Sarah Zhou ; Natsuki Tsuda ; Nicolas Zhang ; Victor Budau ; Frankosiligi Solomon ; Kathleen Kao ; Morana Vucinic ; Kristina Miggiani

Publication Date:

August 30, 2024

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This note offers a framework to help countries navigate, as well as tools to help them manage, the trade-offs between CBDC data use and privacy protection. It addresses retail CBDC, as data access and privacy-preserving considerations in a wholesale environment are similar to those of the traditional RTGS systems. It emphasizes the role of institutional arrangements, data collection, access and storage policies, design choices, and technological solutions. At a given level of preference for privacy, central banks can facilitate better use of CBDC data through robust transparency and accountability arrangements, sound policies, and judicious adoption of privacy-by-design approaches including the use of privacy-enhancing technologies.

Series:

Fintech Notes No 2024/004

Subject:

Anti-money laundering and combating the financing of terrorism (AML/CFT) Central Bank digital currencies Crime Digital financial services Financial markets Payment systems Technology

Frequency:

occasional