On October 18, two influential European government entities, the European Data Protection Board (EDPB) and the European Data Protection Supervisor (EDPS), have voiced their concerns regarding the potential “overcentralization” of the EU digital euro. Their primary focus has been on ensuring data protection, security, and privacy in the creation of this digital currency.
The European Central Bank (ECB) is currently deciding on whether to introduce a digital currency under government control.
Privacy is the First Priority!
Irene Loizidou Nicolaidou, Chair of the European Data Protection Commissioner, explained the significance of maintaining a high standard of privacy and data protection to establish trust among citizens for this new digital currency. She emphasized the importance of integrating data protection into the very design of the digital euro, whether it is used online or offline.
Mairead McGuinness, the European Commissioner for Financial Stability, expressed her gratitude on Twitter for the support received from the European Union for the EDPB and EDPS’s commitment to introducing the digital euro.
Striking the Perfect Balance
The legislation for the digital euro is seen as beneficial for citizens as it allows for digital electronic payments, both online and offline, while still preserving the option to use cash. This approach also aims to provide high data privacy and transparency for citizens.
Data Protection in Digital Currency
While the EDPB and the EDPS have approved the proposed regulations concerning the digital euro, they have also put forth their own suggestions to guarantee the highest standards of personal data protection and privacy in the digital currency’s future. One of their key recommendations is the implementation of a ‘privacy threshold’ for online transactions.
This threshold would reduce the risk of money laundering and terrorism financing associated with low-value digital euro transactions, while simultaneously necessitating technical measures to enhance privacy and security.
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Overall, the EDPB and the EDPS are actively working to ensure that the development of the digital euro prioritizes data protection, safety, and privacy to gain the trust of European citizens.
