The European Central Bank (ECB) has once again promoted its plan for a digital euro, but not everyone is on board.
Lawmakers in the EU have raised several concerns, especially around how such a project might affect privacy and traditional banks.
During a September 4 hearing with the European Parliament’s economic committee, ECB board member Piero Cipollone said the digital euro would allow people across the EU to make electronic payments at any time, including during emergencies.
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However, some members of parliament questioned whether people’s personal information would be protected and whether individuals would start moving money out of commercial banks and into central bank-backed digital wallets.
Cipollone explained that the ECB would not have access to data about who sends or receives money using the digital euro. He also said there would be an offline version of the currency that works like cash in terms of privacy.
According to him, the goal is not to replace banknotes but to support them, especially since digital payments are becoming more common in everyday life.
Cipollone also pointed out that many of the systems Europe uses for digital payments are built by companies based outside the EU. A digital euro, he argued, would provide a backup if networks go down or cyberattacks occur.
He mentioned that the US is already exploring stablecoins backed by the dollar.
Recently, the ECB confirmed that traditional banknotes and coins will remain part of Europe’s payment system. What did Cipollone say? Read the full story.
