Europe's Digital Money Divide: Public vs Private Stablecoins

The European Central Bank is emphasizing that a digital euro would provide strong privacy protections. This comes as Revolut starts rolling out its euro-backed stablecoin, EURR, to eligible customers in selected European markets.

A digital euro would be issued by the central bank and represent public money, whereas EURR is a privately issued stablecoin designed to maintain a value of one euro. Both initiatives respond to the trend of consumers and businesses expecting instant payments across digital platforms and emerging blockchain applications.

The European Central Bank's Executive Board member Piero Cipollone stated that the digital euro would provide the maximum level of privacy supported by current technology, with offline payments only visible to the payer and recipient. For online transactions, the Euro system and network wouldn't be able to identify individuals involved, although participating banks would retain access to information needed for anti-money laundering compliance.

Private stablecoins are not waiting for a digital euro's development, as Revolut has started a phased rollout of EURR in Denmark, Poland, and Portugal. The stablecoin is launching on Ethereum and is designed to maintain a stable value of one euro.