Fabio Panetta, a member of the European Central Bank‘s board of directors, stressed the importance of privacy in any possible CBDC implementation.
In April, European Central Bank board member Fabio Panetta spoke to the Union Committee on Economic and Monetary Affairs, emphasizing the importance of privacy in any possible CBDC rollout. The European Central Bank (ECB) held a public referendum on the idea of a digital euro, polling over 8,000 individuals and companies. The majority of responses indicated that the most pressing question about the issue of a central bank digital currency was safety.
The digital euro, according to Fabio Panetta, will satisfy privacy criteria.
Panetta, a member of the European Central Bank‘s board of directors, said that the digital euro could satisfy these conditions without compromising security standards. Other survey responses, as previously mentioned, emphasized the need for a digital euro to provide stable transfers (18%), while others concentrated on cross-border payments within the European Union (11 percent ). Low fees (9%) and the opportunity to use the device even though offline were mentioned by some respondents (8 percent ). Central banks worldwide are looking at the possibility of a CBDC.
“The most significant aspect of a digital euro is privacy.”
“As I have already mentioned, privacy emerges as the most important feature of a digital euro. Protecting users’ personal data and ensuring a high level of confidentiality will therefore be a priority in our work.” an ECB board member said. As a result, safeguarding users’ sensitive information and maintaining a high degree of confidentiality would be a top priority in our work.” Indeed, long before the idea of a digital euro was conceived, the ECB was looking into privacy-enhancing strategies. Much before the concept of a digital euro was developed, the ECB looked at privacy-enhancing plans. According to preliminary findings, a digital infrastructure may also be tracked for illegal activities while maintaining confidentiality and privacy.