Using Contextual Integrity to Uncover Acceptability of Information Flows in Central Bank Digital Currency Transactions

Abstract

Central Bank Digital Currency (CBDC) are a rapidly evolving payment technology, with privacy being a crucial factor. Research on privacy in CBDC is limited and focuses mainly on technical considerations and its link to adoption intention. This paper presents a first step towards understanding privacy norms in digital euro transactions for German citizens. The study employs a large-scale questionnaire, based on contextual integrity theory, to investigate acceptable flows of information and privacy parameters for CBDC and other digital payment methods. We conduct a pretest with 127 respondents, followed by a main study with 1064 respondents to measure and compare acceptability of various information flows. The results reveal the importance of (un)acceptable recipients of transaction- and identity-related information and the influence of different transmission principles. The findings can be used by central banks and policymakers to design and implement CBDC that corresponds to individuals' privacy norms.