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Session 2.11: A Theory Model of Digital Currency with Asymmetric Privacy
Time:
Tuesday, 26/Aug/2025:
4:30pm - 5:00pm
Location:Carmen Conference hall
Meeting hall “Carmen”, which can accommodate up to 70 people
Presentations
A Theory Model of Digital Currency with Asymmetric Privacy
Prof. Katrin Tinn
McGill University, Canada
This paper considers introducing asymmetric privacy in the design of central bank digital currencies (CBDC) and digital currencies more generally, to preserve the privacy of money spent while keeping the benefits of digital records for money received. It is shown that this feature would help minimize real distortions between consumers, firms, and financiers, while enabling tax optimization and better access to external financing. Protecting the privacy of consumers is desirable from a welfare and efficiency standpoint as long as there exist noticeable privacy concerns. Implementing asymmetric privacy is technologically feasible, using for instance Zero-Knowledge proofs or other privacy tools.