CoinDesk reported:
When discussing CBDC solutions in theory, one topic that inevitably arises is privacy. But maintaining individuals’ right to privacy will not be as challenging in practice due to the role that commercial banks will play in the CBDC ecosystem. Especially for retail CBDCs, commercial banks will very likely hold users’ wallets — and because those institutions already follow responsible user design through their extensive know-your-customer/anti-money laundering, or KYC/AML, processes, they will be well equipped to help maintain high standards of user privacy while also preventing illicit activity. A trusted third party maintaining custody of retail wallets could also offer additional user confidence, thereby benefiting adoption as well.