With the acceleration of the research and development of digital currencies in central banks around the world, the design concept and application effect of digital currencies have become hot topics in academic and policy research. This paper focuses on cash-based Central Bank Digital Currency (CBDC) represented by Digital Currency Electronic Payment (e-CNY), and reviews representative literature on privacy economics, electronic payments, and digital currency design, and finds that privacy costs have become a key factor affecting CBDC acceptance. Especially in the stage where e-CNY has not completely replaced cash, users' sensitivity to payment privacy significantly affects their willingness to accept. This paper studies the correlation mechanism between privacy costs and CBDC acceptance, and puts forward targeted suggestions from three dimensions. In terms of the legal framework, relevant laws and regulations on data use and privacy protection should be introduced. In terms of system design, differentiated accounts should be designed. In terms of promotion strategy, the digital RMB should be promoted to the world through the Belt and Road Initiative. It aims to provide a theoretical basis for balancing privacy protection and compliance supervision, a practical reference for the optimization and promotion of the digital RMB, and experience for the design and application of global cash CBDC.
Ruiyao Shen (Wed,) studied this question.