The European Central Bank (ECB) is thinking about introducing a digital euro. Nonetheless, the EU’s data privacy monitoring authority is concerned about the possibility of excessive control and privacy issues.
To gain people’s trust, the European Data Protection Board (EDPB) wants the digital euro to include strong privacy safeguards. They are concerned about the ECB’s level of oversight and how personal data will be handled.
“A high standard of privacy and data protection is instrumental in gaining citizens’ trust in this new digital currency,” stated EDPB Deputy Chair Irene Loizidou Nicolaidou.
The ECB intends to limit the amount of digital euro people can keep in order to prevent them from withdrawing all of their money from traditional banks. To preserve people’s privacy, the EDPB advises a more decentralized way to handling this information.
“We welcome and support the proposed Regulation’s commitment 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,” said EDPS Supervisor Wojciech Wiewiórowski.
In addition, the EDPB proposes a “privacy threshold” to prevent certain transactions from being traced for anti-money laundering purposes. They want more information on how fraud prevention will be implemented with this digital currency.
The European Commission, which is in charge of establishing digital euro laws, underlines the importance of protecting citizens’ privacy. However, some members of the European Parliament are wary and are carefully evaluating privacy controls and the aim of the digital euro.
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