Fintech Notes

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Format: Chicago

Kieran P Murphy, Tao Sun, Yong Sarah Zhou, Natsuki Tsuda, Nicolas Zhang, Victor Budau, Frankosiligi Solomon, Kathleen Kao, Morana Vucinic, and Kristina Miggiani. Central Bank Digital Currency Data Use and Privacy Protection, (USA: International Monetary Fund, 2024) accessed November 8, 2024

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.

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

Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), CBDC, CBDC data, CBDC design, CBDC stakeholder, Central Bank digital currencies, Central banks, Data processing, Data use, Digital financial services, Europe, Global, IMF Fintech Note 2024/004, Payment systems, Privacy protection, Technology, Trust

Publication Details

  • Pages:

    51

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Fintech Notes No 2024/004

  • Stock No:

    FTNEA2024004

  • ISBN:

    9798400286971

  • ISSN:

    2664-5912