IMF – CBDC Currency Data, Aug 2024

The report discusses the potential implications of central bank digital currency (CBDC) in terms of data collection and privacy. CBDC, being digital, can track personal data such as transaction histories and user demographics. This data could be valuable for financial institutions and could help central banks in achieving policy objectives. However, the use of CBDC data poses risks to privacy, potentially undermining trust in central bank money. Central banks, with experience in data protection, are aware of privacy risks and are considering how to protect personal data before launching a CBDC. It is important to address privacy concerns related to CBDC data use to prevent issues such as data leakages, cyberattacks, and privacy violations. Technology alone may not be enough to ensure privacy protection in the use of CBDC data.