ECB responds to CBDC critics and pledges to protect digital euro privacy

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24.08.2026

ECB responds to CBDC critics and pledges to protect digital euro privacy — ECB defends digital euro privacy

The European Central Bank said it would not be able to identify digital euro users based on their payment data. ECB Executive Board member Piero Cipollone explained the project’s privacy safeguards amid persistent concerns that central bank digital currencies could be used for financial surveillance.

In an interview, the ECB official said the Eurosystem would receive only a limited amount of transaction information. Banks serving users would be able to link specific digital euro payments to individuals, including for compliance with anti-money laundering requirements.

Data protection mechanism

“The Eurosystem would not be able to identify the users making or receiving payments,” Cipollone said in an interview published by the ECB on August 24.

Offline payments are designed to provide an even higher level of privacy. Information about such transactions would be available only to the payer and payee, while the central bank and payment intermediaries would not have access to the details.

Privacy remains one of the main points of criticism surrounding CBDCs. Opponents of government-issued digital currencies fear that such infrastructure could potentially allow authorities to track citizens’ payments and expand financial surveillance.

Reducing reliance on foreign payment systems

The ECB views the digital euro not only as a payment instrument but also as part of the European Union’s efforts to strengthen its financial sovereignty. Cipollone previously noted that around two-thirds of card transactions in the euro area are processed through systems operated by non-European companies.

In June, the European Parliament’s Committee on Economic and Monetary Affairs agreed on its position regarding digital euro legislation. In July, lawmakers approved the start of negotiations with the Council of the EU, bringing the project closer to establishing a final regulatory framework.

Provided the necessary legislation is adopted and technical preparations are completed, the digital euro could be introduced in 2029. The ECB is expected to make a final decision on whether to issue it once the relevant legal framework has been approved.

Meanwhile, the U.S. continues to move in the opposite direction. The Senate approved a housing policy bill that also includes a ban on issuing a U.S. CBDC until December 31, 2030.

The U.S. and EU are therefore taking markedly different approaches to government-issued digital currencies: European authorities are developing the digital euro with an emphasis on privacy and payment sovereignty, while U.S. lawmakers are seeking to restrict the creation of a CBDC through legislation.

South Korea, meanwhile, plans to test tokenized government bonds using CBDC infrastructure.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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