Piero Cipollone, a member of the Executive Board of the European Central Bank (ECB), has stated that the digital euro will offer greater privacy compared to standard bank transfers, ensuring that the Eurosystem will not be able to directly link users to their transactions.
Cipollone clarified that offline payments using the Central Bank Digital Currency (CBDC) will occur directly between users, with transaction details known only to the payer and payee.
In online scenarios, only the participating banks will have the ability to identify users, which is necessary for compliance with anti-money laundering regulations.
Moreover, Cipollone dismissed concerns that the digital euro would replace cash, asserting that this new tool is intended to complement cash in situations where it is not feasible, such as online shopping. He referenced a public survey conducted by the ECB regarding the redesign of euro banknotes as supporting evidence.
Previously, the Austrian digital rights organization Epicenter.works and other groups criticized the digital euro project, arguing that privacy guarantees rely too heavily on institutional promises rather than on technical mechanisms.
On July 9, the European Parliament approved its position on the Single Currency Package, which initiated discussions on the next steps with the EU Council and the European Commission.
The ECB hopes to have the regulation adopted by the end of 2026, with plans to be ready for a potential initial launch of the CBDC by 2029, contingent upon the approval of the document.
It’s worth noting that the ECB has identified 36 banks and payment companies to participate in a closed pilot of the digital euro.