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Privacy is crucial for the digital Euro, ECB public survey reveals

Updated: Jul 25, 2024
Published: Apr 14, 2021
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The European Central Bank (ECB) is now working on developing the digital Euro and has conducted a survey to find out what Europeans want most from the digital currency. Most of the respondents say the digital Euro must protect their privacy.

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Europeans want the digital Euro to protect privacy

The ECB published the findings of its recent survey regarding the development of the digital Euro. An overwhelming number of the respondents said they want the digital Euro to protect their privacy.

In its press release earlier today, the ECB said most of the respondents were concerned about privacy. “The analysis confirms, by and large, our initial findings: what the public and professionals want the most from such a digital currency is privacy (43%), followed by security (18%), the ability to pay across the euro area (11%), no additional costs (9%) and offline usability (8%),” the report said.

ECB Executive Board member Fabio Panetta pointed out that the ECB is only successful if it meets the needs of Europeans. He assured them that the apex bank would do its best to ensure the digital Euro meets the expectations of citizens discussed in the public consultation.

The report revealed that privacy is a crucial feature for both the public and professionals, especially merchants and other businesses. The ECB added that both groups support implementing requirements that would avoid illicit transactions, with only a few respondents supporting full anonymity.

Banks should play a role in the digital economy

A hot debate in the financial space is the position of traditional banks in the digital economy. Some people believe that banks will no longer be relevant when central bank digital currencies are rolled out.

However, most of the respondents feel that banks should still have a role to play in the emerging economy. The ECB said, “More than two-thirds of respondents acknowledge the importance of intermediaries providing innovative services that allow access to a digital euro and indicate that it should be integrated into existing banking and payment systems. They would like additional services provided on top of basic digital euro payments.”

Furthermore, some of the respondents feel the digital Euro should make cross-border payments faster and cheaper. They believe that the currency needs to be usable outside the Eurozone area but that it should come with limits.

The ECB concluded that it received several technical suggestions regarding the digital Euro and will work on them.

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