ECB Defends Digital Euro Privacy Amid Global CBDC Concerns

The European Central Bank is pushing back against privacy worries surrounding its planned digital currency, as central bank digital currencies face growing scrutiny around the world.

ECB Says It Won’t Track Digital Euro Users

In an interview published Monday, ECB Executive Board member Piero Cipollone said the digital euro’s design would limit how much transaction data the central bank can see. “The Eurosystem would not be able to identify the users making or receiving payments,” Cipollone said. He explained that only banks handling a transaction, not the ECB itself, would be able to identify users, mainly for anti-money laundering checks. Offline digital euro payments would keep transaction details visible only to the payer and payee.

Privacy Concerns Persist Worldwide

Despite these assurances, lawmakers, privacy advocates and crypto community members continue to warn that government-backed digital currencies could expand financial surveillance. In the United States, the president barred federal agencies from developing or promoting a CBDC in January 2025 over concerns about privacy and financial stability, while House lawmakers have pushed the Anti-CBDC Surveillance State Act to block the Federal Reserve from issuing one.

Digital Euro Framed as Payment Independence Tool

Cipollone has also argued the digital euro would reduce Europe’s reliance on non European payment companies, which currently handle two-thirds of euro-area card transactions. European Parliament committees have advanced the legislation, with a digital euro possibly launching as early as 2029.