The European Central Bank (ECB) has published the first report on the development of a central bank digital currency (CBDC). The focus is on privacy, promising pseudonymization, hashing, and encryption to protect against transaction tracking. Payment providers will not be able to use customers' financial data without their explicit consent. 📱

Offline transaction methods are also discussed, including direct payments between parties without intermediaries. The first draft of the CBDC technical and regulatory framework should be ready by the end of 2024.

However, issues of privacy and freedom remain on the agenda. 73% of respondents expressed concerns about privacy in CBDCs, according to a 2023 Trezor report.

In the US, lawmakers are pushing back against CBDCs, highlighting the danger that centralized digital money poses to freedom in open societies.