The European Central Bank (ECB) is considering the introduction of a digital euro. Nonetheless, a data privacy oversight authority in the EU is expressing concerns about the potential for excessive control and privacy-related problems.
The European Data Protection Board (EDPB) wants strong privacy protections for the digital euro to gain people’s trust. They are concerned about how much control the ECB might have and how personal data will be handled.
EDPB Deputy Chair Irene Loizidou Nicolaidou said: “A high standard of privacy and data protection is instrumental in gaining citizens’ trust in this new digital currency.
The ECB aims to limit the amount of digital euro people can hold to prevent them from moving all their money out of traditional banks. The EDPB suggests a more decentralized approach to handling this information to protect people’s privacy.
EDPS Supervisor Wojciech Wiewiórowski said: “We welcome and support the commitment in the proposed Regulation to ensure high levels of data privacy for the use of the online digital euro, and an even higher level of protection for the use of the offline digital euro.
The EDPB also calls for a “privacy threshold” to prevent certain transactions from being tracked for anti-money laundering. They want clearer details on how fraud prevention will work with this digital currency.
The European Commission, the entity responsible for proposing digital euro regulations, emphasizes the need to safeguard citizens’ privacy. Yet, certain members of the European Parliament are cautious and are carefully reviewing privacy controls and the digital euro’s purpose.