Central Bank Digital Currency and Money Substitution under the Perspective of Privacy Supply and Demand:The Model and Numerical Analysis
We elucidate the basic logic of the typical societal privacy preference and CBDC usage from the standpoint of privacy supply and demand by deconstructing the net utility difference between Central Bank Digital Currency(CBDC)and physical cash.By including the average societal privacy preference in the money search paradigm,we examine the relationship between the average societal privacy preference and the substitution of CBDC for cash.We apply numerical analysis to simulate scenarios involving CBDCs with high,low,and controllable confidentiality.It has been discovered that changes in the average societal privacy preference affect the liquidity of CBDC and cash via merchant transaction incentives.The CBDC-to-cash ratio rises(or falls)when the privacy preference of typical merchants(or consumers)is stronger.One instance where the CBDC-cash structure maximizes welfare is when the goods are evenly distributed and the CBDC-cash structure meets the average society's privacy preference.Controllable-confidentiality CBDC outperforms the other two CBDC designs in terms of mitigating the impact of strong privacy preferences and the welfare effect.Following the adoption of controllable confidential CBDC,China has the highest maximum social welfare level,followed by general economies,and developed economies have the lowest.
Privacy supply and demandCentral Bank Digital Currency(CBDC)Currency substitutionAnonymity in payment
万方数据
维普
