Digital euro promises cash-like privacy, ECB says

European Central Bank Executive Board member Piero Cipollone defended the digital euro’s proposed privacy protections in an interview published Aug. 24, saying the Eurosystem would be unable to connect individual users with specific payments. Summary ECB says Eurosystem cannot directly link individuals to online or offline digital euro transactions itself. Offline payments would reveal personal transaction details only to the payer and payee involved directly. Banks would still identify online users when conducting required anti-money laundering compliance checks on transactions. The European Parliament approved negotiations, not the final digital euro regulation, in July 2026 itself. A potential 2029 issuance depends on legislation, testing and a later ECB Governing Council decision. His comments addressed fears that a central bank digital currency could expand government surveillance. However, digital rights organizations argue that the project still relies too heavily on institutional promises instead of independently verifiable technical protections. ECB says the digital euro would limit user tracking Cipollone said the digital euro would provide stronger privacy than conventio...