This paper studies the implications of tax evasion for the optimal design of central bank digital currency (CBDC). I build a general equilibrium framework to explicitly allow tax evasion by agents and tax audits by a government. I find that as long as CBDC offers less anonymity than cash,...

Digital platforms, such as social media and video streaming sites, often collect large amounts of personal data from their users. In recent years, most platforms also start offering payment services, such as Apple Pay, Amazon Pay, and WeChat Pay. In this paper, we characterize conditions under...