EU finance ministers: Digital euro must ensure user privacy

The success of the digital euro largely depends on the trust of users, and it cannot be without confidentiality, according to European finance ministers.

Members of the Eurogroup, which includes European finance ministers, called for confidentiality and transparency in the use of the digital euro. Testing of the EU digital currency should begin this year, and if the European Central Bank (ECB) intends to go to the end, then it will have to comply with a number of conditions.

The Eurogroup believes that, with the right priorities, the digital euro can strengthen the independence of the EU and provide citizens of the Union countries with more opportunities and freedom. Without guarantees of confidentiality, the ministers believe, success will not be achieved, because in this case there will be no trust of users.

“However, we believe that the digital euro should also serve other purposes, such as preventing money laundering, illegal financing, enforcing sanctions, and curbing tax evasion,” the joint statement said.

The authors of the statement proposed to provide more privacy to users who will carry out less risky transactions using the digital euro.

The Eurogroup raised the issue of the impact of digital currency on the environment and its role in the financial system, where fiat currency already exists. According to ministers, it should be ensured that the digital euro does not replace cash, but only serves as a supplement.

In response to this message, the head of the Bank of England (BoE), Andrew Bailey (Andrew Bailey), said that he does not see the need to develop a digital pound until the UK decides on the goals and problems that the state digital currency (CBDC) will solve.