While addressing Union Committee on Economic and Monetary Affairs in April, European Central Bank board member Fabio Panetta emphasized the importance of privacy in any potential future CBDC rollout. The ECB had conducted a public consultation on the possibility of a digital euro, canvassing the opinions of over 8,000 individuals and businesses. Most responses suggested privacy was the number one concern surrounding the issuance of a central bank digital currency.
Fabio Panetta declared the digital euro could meet privacy requirements.
ECB board member Panetta declared that the digital euro could meet those requirements without relaxing security standards. As reported earlier, other responses from the survey highlighted the need for a digital euro to provide secure payments (18%), while others focused on cross-border payments within the European Union (11%). Some respondents highlighted the need for low fees (9%) and the ability to use the system even if it’s offline (8%). Central banks around the world are actively exploring a CBDC option.
“Privacy emerges as the most important feature of a digital euro.”
ECB board member said, “as I have already mentioned, privacy emerges as the most important feature of a digital euro. Protecting users’ personal data and ensuring a high level of confidentiality will therefore be a priority in our work.” Indeed, the ECB has been exploring privacy-enhancing techniques since even before the concept of a digital euro emerged. The ECB has been exploring privacy-enhancing techniques since even before the concept of a digital euro emerged. Preliminary research suggested that a digital system could still be monitored for illicit activity while still allowing for transparency and privacy.