Governments continue to discuss policy options for a central bank digital currency (CBDC), but no official decision has been made.
The planned digital euro will offer greater privacy for smaller transactions, but will not allow complete anonymity.
While no decision has yet been made on whether to issue a CBDC, the European Union is already considering how to adapt digital euro and private cryptocurrencies such as Bitcoin to AML (money laundering measures).
Irish Finance Minister Paschal Donohoe told reporters that while ministers agreed that any new format for the euro should “have privacy concerns”, the new rules “will counter the misuse of digital euros”. “A risk-based approach could be followed, which allows for greater privacy for smaller transactions with less risk, and vice versa,” said Donohoe, who chairs the ministerial meetings, also known as the
Eurogroup.
European Central Bank official Fabio Panetta also used expressions similar to Donohoe’s statement.
The European Commission will soon offer a consultation on any legislation that may be needed to support a new CBDC. It will offer, however, at the same time, an over-centralized system will come in handy for malicious people.
Paolo Gentiloni of the European Commission said, “A completely anonymous digital euro is not wanted.”
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