Skip to content

ECB chief says the digital euro CBDC will not be ‘entirely anonymous’

ECB chief says the digital euro CBDC will not be ‘entirely anonymous'

Earlier this year, the European Commission (EC) made a significant stride by proposing a comprehensive legal framework set to usher in a central bank digital currency (CBDC) within the Eurozone’s 20 member states. 

The European Central Bank (ECB) had previously outlined plans for the digital euro, which could potentially debut by 2027, offering consumers the ability to transact with “public money” seamlessly both online and offline. 

In a most recent update, ECB president Christine Lagarde provided further insights into the bloc’s CBDC efforts, most notably the security and anonymity of the upcoming digital asset.

EU parliament members have CBDC privacy concerns

Earlier in the week, on September 25, Lagarde fiercely defended the ECB’s CBDC project, saying the currency “will not be completely anonymous as is the case with a banknote.”

Here’s the full quote:

“We are working to protect privacy, but since digital money leaves a trace on the blockchain, it will not be completely anonymous as is the case with a banknote.”

– the ECB president said. 

Lagarde’s remarks come after some members of the European Parliament (MEPs) voiced their concerns about the CBDC project, particularly its impact on user data privacy.

“Do you make a difference between anonymity and private life? How can we guarantee private life without guaranteeing anonymity?”

– Gunnar Beck, German politician and MEP, asked Lagarde.

Commercial banks will have access to user data, but not ECB

In response, Lagarde said the ECB will not see how people spend their digital cash. 

However, commercial banks will have access to data, Lagarde admitted, because the system will use them “as intermediaries to disseminate the digital euro.” These banks will analyze the data and share it with CBDC users, she added. 

Offering the anonymity the banknotes provide is contrary to the objective of battling money laundering and terrorism financing. But nevertheless, the ECB will not have access to CBDC user data, and there will be no “ECB Big Brother” that will examine transaction details. 

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.