ECB Defends Digital Euro Against Surveillance Fears

The European Central Bank (ECB) has responded to criticism over the digital euro's potential for financial surveillance, pledging to protect user privacy. According to ECB Executive Board member Piero Cipollone, the Eurosystem would only receive limited transaction information.

Cipollone explained that banks serving users could link specific digital euro payments to individuals, including for anti-money laundering compliance purposes. However, he emphasized that the Eurosystem itself would not be able to identify users making or receiving payments.

The ECB views the digital euro as part of the European Union's efforts to strengthen its financial sovereignty and reduce reliance on foreign payment systems. The project aims to provide an alternative to existing payment systems, which are often controlled by non-European companies.

While the digital euro is expected to be introduced in 2029, subject to legislative approval, the US continues to move in the opposite direction. The Senate has approved a bill banning the issuance of a US central bank digital currency (CBDC) until December 31, 2030.