The media learned about the privacy guarantees of the digital euro

  • The digital euro will prioritize data privacy and security, according to the ECB.
  • €1.2 billion has been proposed for development tenders for the CBDC.

In an effort to address concerns about the digital euro’s use of personal data, ECB Executive Board Member Piero Cipollone emphasized the project’s advanced privacy measures. He reassured that it would be secure and technologically advanced, with individuals being registered by the ECB to ensure increased security. The project has faced criticism from opponents who fear that it could enable government surveillance of citizens.

The European Commission introduced a proposal in June for the launch of a digital currency, and it is expected to be discussed in the EU Parliament in the coming months. Cipollone highlighted that the ECB will conduct annual reviews of the digital euro system to ensure compliance with confidentiality rules.

Some politicians, like Michiel Hoogeveen, argue that the case for launching a CBDC in Europe is unconvincing, as alternative payment solutions could address financial inclusion and cross-border payments. However, ECB President Christine Lagarde believes that the digital euro’s development will strengthen the EU’s strategic autonomy and digital competitiveness.

The ECB published a draft budget of €1.2 billion for CBDC development tenders in January 2024. The process was put on hold until corresponding legislation is passed. The Finnish and Spanish central banks have expressed support for the transition to a digital euro, while the Ukrainian central bank plans to test an e-hryvnia in the latter part of 2024.