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Balancing Transparency and Privacy in Central Bank Digital Currencies (CBDCs): Legal Implications and Challenges
Abstract
This study elucidates the intersection of privacy and central bank digital currencies (CBDCs), employing Solove's pragmatic approach and Nissenbaum's theory of contextual integrity to dissect privacy within various CBDC frameworks. It articulates three foundational principles for privacy-centric CBDC design: legal acknowledgment of privacy rights, embedding privacy by design, and prioritizing user-centricity. This analysis not only deepens the understanding of privacy in the digital currency domain but also proposes a legal and technical blueprint for central banks aspiring to develop CBDCs that respect and protect user privacy.
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