During a meeting of the currency bloc’s finance ministers on Monday, officials stated that a new digital euro will enable improved privacy for smaller transactions but not complete anonymity.
Governments are discussing policy options for a central bank digital currency, but there has been no formal decision to launch one.
EU is working on Digital Euro
According to Irish Finance Minister Paschal Donohoe, ministers agreed that any new euro format should “accommodate privacy concerns,” but new restrictions will also “counteract the use of digital euros for inappropriate reasons.”
Despite the fact that no formal decision has been taken on whether or not to issue the central bank digital currency (CBDC), the European Union is already considering how to link payment innovations to anti-money laundering legislation, both for the digital euro and private cryptocurrencies like bitcoin.
He backed Fabio Panetta of the European Central Bank’s previous comments, saying that offline payments for low-value payments made between people who are physically close to each other, such as in stores and between friends, are a good concept. will help include those shut off from the financial system.
Concerns
The European Commission is expected to issue a consultation on any legislation needed to support the new digital euro soon, but it has also been cautioned that overly centralized Spies might use the technology as a “honeypot” of data, leading to unsettling mass surveillance.
The European Commission’s Paolo Gentiloni stated, “A completely anonymous digital euro is not desired.”
Last week, the European Parliament adopted controversial new anti-money laundering rules that will compel everybody who participates in even small-value bitcoin payments to be identified, a move that many in the industry have criticized as invading privacy and hurting competitiveness.
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Source: https://www.thecoinrepublic.com/2022/04/06/new-digital-euro-will-improve-privacy-for-transaction/