BIS Official Addresses Privacy Concerns Over Retail CBDCs

According to CoinDesk, Bank for International Settlements (BIS) official Cecilia Skingsley addressed privacy concerns surrounding national digital currencies, stating that central banks have no interest in personal data. The BIS has been encouraging governments worldwide to continue working on central bank digital currencies (CBDC) to prepare for the future of payments. However, monetary authorities in major jurisdictions like the U.S. and the European Union face criticism over plans to issue CBDCs, with citizens' privacy being a primary concern. A recent BIS report showed that ensuring privacy increased participants' willingness to use a CBDC by up to 60% when purchasing privacy-sensitive products. Skingsley, head of the BIS' Innovation Hub, spoke at the Atlantic Council's CBDC conference in Washington DC, urging the public to stay open to technological innovation. She emphasized that central banks have no commercial interest in personal data, unlike the private sector, and that legal frameworks protect the information banks have on people's spending habits. Skingsley also addressed concerns that retail CBDCs could cause bank runs, stating that with the right provisions, such as fast-acting crisis management tools and limits on fund withdrawals, CBDCs won't necessarily increase the possibility of bank runs. She added that wholesale CBDCs, used only between banks, could be a 'game changer' for cross-border payments, citing BIS Innovation Hub projects like Jura, Dunbar, and mBridge as examples. The BIS will publish the conclusions from project Tourbillon, which proposes new privacy solutions for retail CBDCs, on Wednesday.