European Government Entities Voice Concerns Over Centralization of EU Digital Euro
On October 18, the European Data Protection Board (EDPB) and the European Data Protection Supervisor (EDPS) expressed their concerns about the potential overcentralization of the EU digital euro. Their main focus is to ensure data protection, security, and privacy in the creation of this digital currency.
The European Central Bank (ECB) is currently deciding whether to introduce a government-controlled digital currency.
Privacy is the First Priority!
Irene Loizidou Nicolaidou, Chair of the European Data Protection Commissioner, highlights the importance of maintaining a high level of privacy and data protection to establish trust among citizens for this new digital currency. She emphasizes integrating data protection into the design of the digital euro, whether 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 payments both online and offline while preserving the option to use cash. This approach aims to provide high data privacy and transparency for citizens.
Data Protection in Digital Currency
The EDPB and EDPS have approved proposed regulations concerning the digital euro but have also suggested their own measures to ensure personal data protection and privacy. One key recommendation is implementing a “privacy threshold” for online transactions to reduce money laundering and terrorism financing risks while enhancing privacy and security.
Hot Take: Prioritizing Data Protection in the Development of EU Digital Euro
The European Data Protection Board and the European Data Protection Supervisor are actively working to prioritize data protection, safety, and privacy in the development of the digital euro. By integrating strong privacy measures, such as a privacy threshold for online transactions, they aim to gain the trust of European citizens. Ensuring a balance between digital convenience and data protection will be crucial for the success of the EU digital euro.
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