Fabio Panetta, a member of the European Central Bank’s board of directors, stressed the importance of privacy in any possible CBDC implementation.
In April, European Central Bank board member Fabio Panetta spoke to the Union Committee on Economic and Monetary Affairs, emphasizing the importance of privacy in any possible CBDC rollout. The European Central Bank (ECB) held a public referendum on the idea of a digital euro, polling over 8,000 individuals and companies. The majority of responses indicated that the most pressing issue about the issuance of a central bank digital currency was privacy.
The digital euro, according to Fabio Panetta, will meet privacy requirements
Panetta, a member of the European Central Bank’s board of directors, said that the digital euro could meet these criteria without compromising security standards. Other survey responses, as previously mentioned, emphasized the need for a digital euro to provide safe payments (18%), while others concentrated on cross-border payments within the European Union (11 percent ). Low fees (9%) and the ability to use the system even when it is offline were mentioned by some respondents (8 percent ). Central banks all over the world are looking into the possibility of a CBDC.
According to an ECB board member,
“as I have already mentioned, privacy emerges as the most important feature of a digital euro. Protecting users’ personal data and ensuring a high level of confidentiality will therefore be a priority in our work.”
Indeed, long before the idea of a digital euro was conceived, the ECB was looking into privacy-enhancing techniques. Much before the idea of a digital euro was conceived, the ECB was looking into privacy-enhancing techniques. According to preliminary studies, a digital framework may still be monitored for illegal activity while maintaining transparency and privacy.