- ECB board member Piero Cipollone says the digital euro will guarantee the maximum privacy current technology can offer.
- Offline payments would be visible only to the payer and payee; online, the Eurosystem cannot identify parties, but banks can.
- The European Parliament agreed its negotiating position in July, with a pilot due in the second half of 2027 and first issuance targeted for 2029.
European Central Bank executive board member Piero Cipollone has stated that a digital euro would provide users with the highest level of privacy available, directly addressing concerns that a central bank digital currency would allow Frankfurt to monitor spending. In an interview published Monday, Cipollone explained that offline payments would run directly between individuals, with details accessible only to the payer and payee.
For online transactions, the Eurosystem cannot identify the parties involved, though commercial banks distributing the currency can, including for anti-money laundering purposes. “The digital euro guarantees the maximum level of privacy that current technology can offer,” Cipollone said.
The European Parliament agreed on its negotiating position for the regulation in July, and talks with member states aim for a deal by the end of 2026. The ECB has named 36 payment providers for a 12-month pilot starting in the second half of 2027, with first issuance targeted for 2029.
Meanwhile, Washington reached the opposite conclusion on privacy, with the 21st Century ROAD to Housing Act barring the Federal Reserve from issuing a central bank digital currency until 2030, after which explicit congressional authorization is required. The ban exempts open, permissionless, and private dollar-denominated currency, leaving stablecoin issuers regulated under the GENIUS Act untouched.
Cipollone has warned that growing stablecoin use could strip European banks of retail deposits, compounding the fees and transaction data already lost to mobile payment platforms.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
