Piero Cipollone assured Parliament that the digital euro would have superior privacy protection features compared to existing commercial payment solutions, including anonymous transactions for offline payments.

In a recent meeting with the European Parliament’s Economic and Monetary Affairs Committee, ECB Executive Board member Piero Cipollone discussed the upcoming digital euro, specifically its privacy features, infrastructure procurement, and operational standards.

Cipollone’s speech highlighted the ECB’s positive attitude towards cooperation with EU entities on digital currency infrastructure. He added that all of these entities are registered within the EU and controlled by EU nationals.

Private issues

Cipollone’s speech highlighted privacy as a key consideration. He assured Parliament that the digital euro would have superior privacy protections compared to existing commercial payment solutions and include anonymous offline payment transactions.

European Central Bank executives detailed privacy features in the digital euro plan, saying it would collect only the minimal pseudonymous data needed for operations such as settlement. This approach is designed to enhance online payment privacy and address public concerns about data protection in digital transactions.

For online transactions, the ECB will only access necessary pseudonymized data sets for operational purposes such as settlement, thereby promising users greater control over their data than current private payment systems offer.

Additionally, Cipollone said the digital euro is designed with top-level cybersecurity measures to protect user data and transactions.

Cipollone said the digital euro is designed to mirror the accessibility and reliability of cash, thereby reducing reliance on global payment processors and ensuring uniform services across the eurozone. He added:

“Cash and a digital euro have the same goal: to ensure that everyone, regardless of income, can make payments in all situations of everyday life. It is a fundamental right that should be protected in the same way in all parts of the euro area.”

He likened the infrastructure of the digital euro to public railways, suggesting it would be state-owned but accessible to a variety of private operators.

Implementation and stability

Cipollone also spoke of the importance of a digital euro rulebook to ensure consistent implementation across the eurozone, aiming to reduce reliance on international payment processors by providing a uniform set of rules, standards and procedures.

Addressing financial stability concerns, ECB executives outlined measures to prevent the digital euro from competing with traditional savings accounts, including interest-free holding and restrictions on companies and financial institutions accumulating digital euros.

He also mentioned plans to facilitate seamless transactions by connecting CBDC wallets with bank accounts, thereby avoiding the need for pre-funding wallets.

The dialogue between the ECB and the European Parliament is part of the preparatory phase for a digital euro, with the ECB providing technical input to co-legislators. The ECB's efforts aim to prepare for a potential digital euro launch within a framework that prioritizes privacy, operational readiness and financial stability. #欧洲央行  #数字欧元