ECB Defends Digital Euro's Privacy Architecture

The European Central Bank (ECB) is addressing concerns about the digital euro's privacy architecture. ECB board member Piero Cipollone confirmed that the digital euro will provide the 'maximum level of privacy' current technology allows.

Cipollone noted that third parties cannot see the identities of transacting parties using the offline payment functionality, and only banks can identify parties for online payments in compliance with anti-money laundering regulations. The Eurosystem also cannot directly link specific individuals to digital euro transactions.

The ECB is currently stress-testing the digital euro ahead of a scheduled mainstream launch in 2029. A 12-month pilot program is planned for the second half of 2027, with 36 payment providers participating.