ECB defends digital euro privacy as CBDCs face global scrutiny

The European Central Bank (ECB) is defending the privacy design of its planned central bank digital currency (CBDC).In an Aug. 10 interview published Monday, ECB Executive Board member Piero Cipollone said the digital euro’s design would limit the amount of transaction information available to the central bank.“The Eurosystem would not be able to identify the users making or receiving payments,” Cipollone said.Cipollone said only banks involved in transactions would be able to identify users, including for anti-money laundering purposes, while the Eurosystem would not be able to directly link specific individuals to digital euro payments. Meanwhile, offline digital euro transactions would allow payment details to be available only to the payer and payee.Despite the ECB’s efforts to quell privacy concerns over the planned digital euro, lawmakers, privacy advocates and crypto community members have warned that government-issued digital currencies could expand financial surveillance.In the US, President Donald Trump prohibited federal agencies from developing or promoting a CBDC in January 2025, citing risks to financial stability, individual privacy and US sovereignty. House lawmaker...