ECB Clarifies Digital Euro Privacy Limits

The European Central Bank (ECB) has clarified that digital euro payments made offline will be private, but banks can still see online transactions. According to Piero Cipollone, an ECB Executive Board member, offline payments will only be recorded by the two parties involved in the transaction.

Cipollone stated that while the Eurosystem cannot identify users making or receiving payments online, commercial banks handling these transactions can still find out who the parties are. This is because they need to follow the same rules for reporting as all other money and must adhere to identity duties.

The digital euro aims to provide maximum privacy within current technology limits, Cipollone promised. However, lawmakers and privacy advocates have expressed concerns that state-issued digital currencies could expand financial surveillance.