CBDC Could Give Consumers Power Over Their Data

The creation of a central bank digital currency (CBDC) that preserves consumers’ privacy could help give consumers greater power over their data, new research finds.

Authors Rodney Garratt and Michael Lee – from the University of California, Santa Barbara and the New York Fed, respectively – say a CBDC could help consumers “monetise” their privacy.

Even if the CBDC is an inferior mode of payment, its mere existence is likely to encourage private payments monopolists to offer consumers a better.