Legislators from the European Commission believe that the Digital Euro, the EU’s planned Central Bank Digital Currency (CBDC), will improve privacy for small-value transactions.
With CBDCs likely to play a big part in global finance in the near future, the European Union (EU) is working hard to develop a solution that relates payment innovations to its anti-money laundering (AML) standards, which will apply to both the Digital Euro and private cryptos.
However, no formal decisions have been made within the EU as to whether a Digital Euro will be issued shortly.
The EU’s finance ministers announced on Monday that the Digital Euro will improve privacy for smaller transactions. However, they cautioned that perfect anonymity is still a long way off.
Digital Euro Should “Accommodate Privacy Concerns: Irish Prime Minister
Speaking to the press, Irish Finance Minister Paschal Donohoe said that Digital Euro should “accommodate privacy concerns”.
He added that new rules will also be “counteracting the use of digital euros for unwarranted purposes”. Donohoe further suggested, “A risk-based approach could be followed allowing for more privacy for less risky and smaller transactions and vice versa.”
Fabio Panetta, a prominent European Central Bank (ECB) executive board member has further added that the Digital Euro “would provide people with a level of privacy equal to or higher than that of private digital solutions.”
Lawmakers at the European Commission will do further consultations on legislation that would be required to support the new Digital Euro.
But the Commission further warned that an unduly centralized system could aid spying and continue being a mass surveillance menace, reports CoinDesk. Furthermore, EU lawmakers have been proposing AML checks for crypto and stable coins.
Fabio Panetta, a prominent European Central Bank (ECB) executive board member has further added that the Digital Euro “would provide people with a level of privacy equal to or higher than that of private digital solutions.”
Conclusion
Lawmakers at the European Commission will do further consultations on legislation that would be required to support the new Digital Euro.
But the Commission further warned that an unduly centralized system could aid spying and continue being a mass surveillance menace, reports CoinDesk. Furthermore, EU lawmakers have been proposing AML checks for crypto and stablecoin.
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