This study focuses on the design of central bank digital currency (CBDC) and its implications for privacy protection and data governance. The researchers conducted a randomised survey experiment with a nationally representative sample of over 3,500 participants from Korea. The aim was to measure the participants’ willingness to use CBDC and how it changes based on the degree of anonymity and privacy protection. The study also examined whether providing information on the potential privacy benefits of CBDC would increase willingness to use it. The results showed that privacy protection is a crucial factor in determining the public’s willingness to use CBDC.
The main findings of the study indicate that the privacy-preserving aspects of the CBDC design significantly influence willingness to use CBDC, particularly when purchasing privacy-sensitive products such as psychiatric services or adult products. Additionally, the willingness to use CBDC substantially increased when participants were provided with information about the privacy benefits of using it. The effects of these factors varied depending on respondents’ trust in public or private institutions for privacy protection, as well as their demographic characteristics.
In summary, privacy protection is a key consideration in the design of CBDC. The research findings suggest that both the degree of privacy protection and the provision of information on privacy benefits significantly increase the public’s willingness to use CBDC, particularly when purchasing privacy-sensitive products. These insights are valuable for informing the design of CBDC and understanding its potential adoption by the public.