Digital Euro Will Have Privacy Safeguards, European Finance Ministers Say

No formal decision has yet been taken concerning the issuance of the central bank's digital currency (cbdc)

Ministers had agreed that any new format for the euro should Ministers agreed that any new format for the euro should 'accommodate privacy concerns,' Irish Finance Minister Paschal Donohoe told reporters.accommodate privacy concerns," Irish Finance Minister Paschal Donohoe told reporters, but new rules will also be "counteracting the use of digital euros for unwarranted purposes."

"A new digital euro will provide greater confidentiality for small transactions, but will not permit complete anonymity, Officials stated following a meeting of finance ministers of the monetary bloc on Monday.

Offline payments for low value-payments made between people who are physically close, such as in stores and between friends, would help include those cut off from the financial system, he said, backing recent proposals made by the European Central Bank's Fabio Panetta.

The European Commission is due to present a consultation soon on any legislation that might be needed to back up the new digital euro, but has also been warned that an unduly centralized system could represent a "honeypot" of data for spies and constitute troubling mass surveillance.

Off-line payments for low-value payments made between individuals who are physically close, like in shops or with friends, The inclusion of those who are no longer in the financial system would be useful, he said, support the European Central Bank's recent proposals fabio panetta.

The European Parliament last week agreed on controversial new anti-money laundering rules that would require identification of those participating in even small-value payments of cryptocurrencies like bitcoin, which many in the industry have said would invade privacy and stifle innovation.

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