In The Digital Euro Plan, The EC Emphasizes Privacy

The European Commission has put out a plan for a law that would set up the legal framework for a possible digital euro. The proposal stresses that the CBDC would be in addition to cash, not in place of it.

A digital euro would be available along with other private national and foreign ways to pay, like cards or apps.

It would work like a digital wallet, and people and companies in the euro area could use it to pay for things at any time and anywhere.

The euro could be used to pay for things both online and in person. Online transactions would keep people’s information as private as digital payments do now, but physical payments would be like paying with cash, since nobody would be able to see what people are paying for.

The digital euro would be given out by banks and other companies that help people pay for things. Basic services would be free for people to use. Unless they only accept cash, stores would have to accept the digital currency.

Before the European Central Bank chooses whether or not to roll out a digital euro, the European Parliament and Council still need to agree to the plan.

However, ECB executive board member Fabio Panetta has made clear that he favours such a development, writing in a blog: “The digital euro is a necessary step to ensure that our monetary system keeps up with digital advances. It will be widely accessible and easy to use while preserving privacy – just like cash.”

The EC is also taking steps to make sure that cash is still widely accepted and used throughout the euro area.

Says a statement: “The proposal will ensure that everyone in the euro area is free to choose their preferred payment method and has access to basic cash services. It will ensure the financial inclusion of vulnerable groups who tend to rely more on cash payments, such as older people.”