ECB Favors Transparency Over Privacy in Digital Euro Design, Presentation Reveals – Finance Bitcoin News

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User anonymity is not a desirable feature of a digitaleuro currency, European Central Bank says.

The European Central Bank leans toward a “transparent” digital euro over one that ensures a higher level of privacy for its users, a presentation devoted to the project has indicated. In the document, the monetary authority explores different privacy options for the eurozone’s digital fiat.A presentation by the European Central Bank has thrown some light on the regulator’s “preliminary views” on the privacy-related features of the digital euro.

A report by the ECB highlighted privacy as a key concern for future users of the digital euro, but the bank now says that privacy needs to be assessed in the context of other EU policies. Among them, anti-money laundering and counter-financing of terrorism efforts. Elaborating on the matter, the regulator states:

User anonymity is not a desirable feature, as this would make it impossible to control the amount in circulation and to prevent money laundering.The European central bank further insists that the Eurosystem, which consists of the ECB and the central banks of the eurozone members, should have access to the digital euro transaction data in order to validate payments. Also, anonymized, aggregate data should be available for statistical and oversight purposes as well as to fight fraud and crime.

The second approach would allow a higher degree of privacy for low-value payments and the last one envisages privacy for offline transfers, in which case low-value balances and amounts would not be known to financial intermediaries or authorities. The ECB admits that the latter two “desirable options” could be investigated together with European legislators.

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