The European Central Bank (ECB) official stated that a potential digital euro would allow anonymous transactions for small payments despite anti-money laundering (AML) norms.
ECB Executive Board member Fabio Panetta’s proposal to give CBDCs special treatment contradicts the proposed rules for private cryptos like Bitcoin, where lawmakers are discussing a plan to ban privacy at even the lowest level.
Normally, financial transactions are subject to checks called “know your customer” (KYC). These rules mean that financial institutions must check the identity of the individuals involved to ensure that the funds are not laundered and used to finance criminal activities.
Panetta said today that rules are poised to be relaxed for people using an ECB-issued digital currency, at least when it comes to small payments. “More privacy may be considered for low-value online and offline payments made using digital euros,”
Panetta told MPs at the European Parliament’s Committee on Economic and Monetary Affairs. In addition, referring to the European Union’s rules against money laundering and terrorist financing, he said, “These payments may be subject to simplified AML/CFT controls.”
The EU has strict rules on the protection of personal data. Privacy protections are the number one feature Europeans want in the digital euro, according to the ECB’s 2021 survey.
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