User anonymity is not a desirable feature of the design of the digital euro. This is evidenced by a presentation by the ECB, according to Patrick Hansen, development manager at Unstoppable Finance.
1/ Roughly a year ago, EU citizens responded to the ECB consultation with a clear message that privacy is by far the most important of any digital euro features.
The ECB has now published the privacy options on the table in a new presentation 👇 https://t.co/sRcaqr89BV pic.twitter.com/WmO4WjYGfk
— Patrick Hansen (@paddi_hansen) May 3, 2022
In the document ‘Privacy options for the digital euro’ outlines possible scenarios for safeguarding user privacy in a central bank digital currency (CBDC). The authors noted the need to assess this issue ‘in the context of other EU policy objectives, notably anti-money laundering and countering the financing of terrorism’.
Hansen noted that the baseline scenario provides for access by intermediaries (banks) to transaction data. According to the fourth slide, the ECB regards user anonymity in the digital euro as undesirable.
5/ However, the ECB also clearly states that user anonymity is not desirable.
So it is hard (even naive?) to believe that fully anonymous offline payments like with cash will really be implemented with a digital euro. pic.twitter.com/XPE6bPDFy7
— Patrick Hansen (@paddi_hansen) May 3, 2022
The expert noted that at present it is unclear what benefit the digital euro offers compared with existing digital payment instruments. He urged community participants to provide feedback on CBDC design.
According to Information on the European Commission’s website, public comments on the digital euro will close on June 14, 2022. In mid-April, the body received around 10,000 responses.
The initiative to issue the digital euro originated in November 2019. In October 2020 the ECB published a comprehensive report on this topic.
In spring 2021, the regulator’s chair Christine Lagarde said that the EU could launch its own CBDC within four years if policymakers approve the project.
In July, the ECB’s Governing Council decided to begin the CBDC research phase, and in October the regulator formed an advisory group on the potential development and deployment of the digital euro.
Earlier, EU Commissioner for Financial Affairs Mairead McGuinness said that the EU would consider a CBDC bill in early 2023.
Subscribe to ForkLog News on Telegram: ForkLog Feed — the full news feed, ForkLog — the most important news, infographics and opinions.