ECB chief says the digital euro CBDC will not be ‘entirely anonymous’

Earlier this year, the European Commission (EC) made a significant stride by proposing a comprehensive legal framework set to usher in a central bank digital currency (CBDC) within the Eurozone’s 20 member states. 

The European Central Bank (ECB) had previously outlined plans for the digital euro, which could potentially debut by 2027, offering consumers the ability to transact with “public money” seamlessly both online and offline. 

In a most recent update, ECB president Christine Lagarde provided further insights into the bloc’s CBDC efforts, most notably the security and anonymity of the upcoming digital asset.

EU parliament members have CBDC privacy concerns

Earlier in the week, on September 25, Lagarde fiercely defended the ECB’s CBDC project, saying the currency “will not be completely anonymous as is the case with a banknote.”

Here’s the full quote:

Cryptocurrency

3 ways to leverage new ChatGPT features for crypto

Cryptocurrency

AI forecasts XRP price for the end of 2023

Cryptocurrency

3 cryptocurrencies under $0.10 to buy next week

Cryptocurrency

R. Kiyosaki: Bitcoin will become priceless when CBDC enters market

Cryptocurrency

Radix Babylon upgrade enters new age for Web3 user and developer experience

“We are working to protect privacy, but since digital money leaves a trace on the blockchain, it will not be completely anonymous as is the case with a banknote.”

– the ECB president said. 

Lagarde’s remarks come after some members of the European Parliament (MEPs) voiced their concerns about the CBDC project, particularly its impact on user data privacy.

“Do you make a difference between anonymity and private life? How can we guarantee private life without guaranteeing anonymity?”

– Gunnar Beck, German politician and MEP, asked Lagarde.

Commercial banks will have access to user data, but not ECB

In response, Lagarde said the ECB will not see how people spend their digital cash. 

However, commercial banks will have access to data, Lagarde admitted, because the system will use them “as intermediaries to disseminate the digital euro.” These banks will analyze the data and share it with CBDC users, she added. 

Offering the anonymity the banknotes provide is contrary to the objective of battling money laundering and terrorism financing. But nevertheless, the ECB will not have access to CBDC user data, and there will be no “ECB Big Brother” that will examine transaction details. 

Comments

Post a Comment

Popular posts from this blog

Barry Silbert deletes old tweets amid GBTC selloff

Under-fire Digital Currency Group founder Barry Silbert has apparently deleted a raft of his old tweets . According to his X (formerly Twitter) account, Silbert signed up in October 2011, however, at the time of writing, his timeline shows no tweets or replies older than January 5 this year. Luckily for die-hard Silbert fans, X user Pledditor has screenshotted some of his “greatest hits.” Looks like @BarrySilbert has deleted all his old tweets The good news? I have screenshotted some of his greatest hits pic.twitter.com/GLWPbCf5mN — Pledditor #FixTheFilters (@Pledditor) January 15, 2024 Read more: Former DCG advisor Larry Summers on list of Jeffrey Epstein’s ‘Harvard friends’ Among the messages saved by Pledditor is a classic in which Silbert brands himself a “ complete and total professional failure ,” and one in which he advises Dogecoin holders to convert it to bitcoin. It’s not clear what prompted Silbert’s Social Media cull but he’s currently taking Social Media flak
Read more

Trader Issues Warning on Solana Rival That’s Up 247% in One Month, Updates Outlook on LDO and One Other Altcoin

Image
A widely followed crypto strategist warns that a Solana (SOL) competitor that’s up more than 3x in the last 30 days is flashing signals that it may have printed a short-term top. The pseudonymous analyst known as Altcoin Sherpa tells his 205,700 followers on the social media platform X that while layer-1 blockchain Sei (SEI) is still in an uptrend, it starting to show signs of bullish exhaustion. “Why it looks good: -consolidation and highly bullish high time frame market structure -still bullish on all time frames -EMAs (exponential moving averages) all catching up + other alts looking strong Why it doesn’t: -could be an exhaustion pump here and last big move up -could be rotation from others (SOL/SEI/etc/) to ETH season also known as ARB/LDO/OP -dying volume/some signs of distribution here.”  Source: Altcoin Sherpa/X At time of writing, SEI is trading for $0.785, up over 247% from its 30-day low of $0.226. The trader is also keeping an eye on the price
Read more

Nuant becomes a member of the OpenWealth Association

On January 18, Nuant joined the OpenWealth Association, contributing to advancing digital assets risk management within Swiss banking, WealthTech, and traditional finance, per the information shared with Finbold. In doing so, Nuant recently joined traditional finance entities such as Credit Suisse, LGT, VP Bank, and WealthTech firms like Assetmax and InvestSuite. This strategic partnership represents a noteworthy progression in crypto investment risk management within Switzerland’s financial sector. The OpenWealth Association aims to establish, uphold, and implement open Application Programming Interface (API) standards within the global wealth management community. This commitment aims to facilitate seamless financial data exchange among institutions. Nuant as representative of the CeDeFi sector Cryptocurrency Anthony Scaramucci says Bitcoin to skyrocket to $170,000 by 2025 Cryptocurrency Donald Trump says he’ll ‘never allow a CBDC’ if elected
Read more