In July the European Central Bank (ECB) announced it launches a project to prepare for possibly issuing a digital euro:
(THREAD) We have decided to launch a project to prepare for possibly issuing a digital euro. We will look at how a digital euro could be designed and distributed to everyone in the euro area, as well as the impact it would have https://t.co/KCf73qHOZ8 1/3 pic.twitter.com/eHvpFlH8sq
— European Central Bank (@ecb) July 14, 2021
ECB says that privacy of users will be respected, but not everyone is convinced:
Which proves that countries that joined 🇪🇺 but rejected euro made a great decision. Nature of monetary system and full financial surveillance of every financial exchange is an orwellian nightmare pushed by unelected cabal in BIS.
— Bacchus Octoginta (@boctoginta) July 14, 2021
There were comments by the European Data Protection Board (EDPB), read their press release of 21 June 2021, mentioning a letter of 18 June 2021 to EU institutions on the privacy and data protection aspects of a possible digital euro:
The EDPB adopted a letter addressed to EU Institutions on the privacy and data protection aspects of a possible digital euro. In the letter, the EDPB stresses that a very high standard of privacy and data protection is crucial to reinforce the trust of end users and should be considered a distinctive element in the offering of a digital euro, representing a key factor of success. Such concerns should be taken into account from the design stage. In addition, the EDPB recommends that the EU body in charge of the design of the project performs a high-level data protection impact assessment. The EDPB further indicates that it stands ready to provide advice to the ECB or other EU institutions.
ECB responded in a letter of 21 July 2021.
The financial sector and its supervisors are not enthousiastic about privacy and data protection is not an important issue either. So it is important to follow closely what Europe will do with the digital euro.
- Press release of 14 July: Eurosystem launches digital euro project.
- Preparing for the euro’s digital future. Blog post by Fabio Panetta, Member of the Executive Board of the ECB, 14 July 2021. He says privacy is respected: “Being offered by the central bank – which has no commercial interest in monetising the data of users – the digital euro would help to protect people’s privacy against commercial usage or unjustified intrusion“.
- Report on a digital euro, October 2020: information page.
- General ECB-page on the digital euro.
- ECB-page with documents on the digital euro.
Earlier post on this blog on the digital euro (April 2021).
Physical cash is probably the most financially inclusive monetary instrument we’ve ever witnessed. Central bankers are planning to take it away from us.
— Arturo Portilla (@Arturo_P_A) August 13, 2021