Most central banks in advanced economies consider issuing central bank digital currencies
(CBDCs) to address the declining use of cash as a means of payment and to position
themselves against increased competition from Big Tech companies, cryptocurrencies, and
stablecoins. One crucial design dimension of a CBDC is the degree of transaction privacy.
Existing solutions are either prone to security concerns or do not provide full (cash-like)
privacy. Moreover, it is often argued that a fully private payment system and, in particular …