The finance ministers of the eurozone countries reaffirmed their support for efforts to prepare for the possible launch of a digital euro. Meanwhile, the single currency area’s monetary authority tried to reassure future users that the new currency will be “privacy-preserving by default and by design.”
Eurogroup will remain involved in developing digital euro, says many decisions are political
The finance ministers of the EU member states that have adopted the common European currency, the Eurogroupmet in Brussels on Monday to mark Croatia’s entry into the eurozone and discuss current issues, from the economic situation to the coordination of fiscal policy in the eurozone.
One of the topics discussed was the progress of the initiative to issue a digital version of the euro. In a statement adopted by the forum, government officials pledged to continue their involvement, with Paschal Donohoe, chair of the informal format, saying:
What we plan to do is continue our political engagement with the ECB and with the Commission as they go through their processes, because what the Eurogroup recognized today is that many decisions that they expect are inherently political.
“The Eurogroup considers that the introduction of a digital euro, as well as its main features and design options, requires political decisions that must be discussed and taken at the political level,” the joint statement elaborated, highlighting the need for respective legislation. approved by the European Union. Parliament and the Council of the EU.
While reaffirming their commitment to backing the project, which is still in its research phase which began in mid-2021, the ministers also stressed that any future decision on possible issuance “would only come after further exploration in a possible phase.” of realization”.
Following their discussions, group members insisted that a digital euro should complement, not replace, cash, among other recommendations. Central bank digital currency (CBDC) should come with a high level of privacy, they also said and explained:
To be successful, the digital euro must ensure and maintain the trust of users, for whom privacy is a key dimension and a fundamental right.
The ECB affirms that Europe’s digital currency will guarantee the privacy of payments
“Preserving privacy by default and by design” was one of the stated objectives in a “Digital Euro – Inventory” report also published this week by the European Central Bank (ECB). Presenting his views on the matter, the regulator said that the digital euro will “guarantee the privacy of personal data and payments” and detailed:
The ECB will not have information about people’s holdings, their transaction histories or payment patterns. The data is only accessible to intermediaries for regulatory compliance.
The eurozone monetary authority further emphasized that its CBDC will not be programmable money, noting that lawmakers will have the final say on the balance between privacy and other public policy goals. The ECB also hinted that more privacy could be allowed for offline and less risky transactions.
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