Bundesbank President Joachim Nagel said that the central bank will focus on the security and privacy of the digital euro. In particular, the focus will be on the design of CBDC and the protection of user data. This topic worries many Europeans – they fear that governments will be able to control their money through a state-owned stablecoin.
“The digital euro will provide a higher level of privacy compared to current payment systems because it eliminates third-party services. The Eurosystem will not have access to users' personal information. Therefore, they will have more control over their personal data,” Nagel promised.
The President of the German Central Bank assured that the digital euro will contribute to the development of European payment systems. Sometimes bank cards from one jurisdiction do not work in another, even if these countries use the international payment systems Visa and Mastercard. The digital euro will be standardized and can be used in daily transactions throughout the European Union, Nagel is sure.
In 2022, the Bundesbank began collaborating with the Bank of England (BoE) and the Bank of Canada to explore the technical concept of a CBDC. The German central bank also worked with the Boston Federal Reserve on Project Hamilton to explore the technical feasibility of a digital dollar.
Note that back in 2019, ex-President of the Bank of Germany Jens Weidmann said that the Central Bank’s digital currencies could destabilize financial systems and interfere with the work of commercial banks.
Source: Bits
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