ECB Executive Board member Piero Cipollone stated that the digital euro will offer a higher level of privacy than traditional bank transfers, and the Eurosystem will not be able to directly link users to their transactions.
Cipollone clarified that offline payments in CBDC should occur directly between users. According to him, the details of such transactions will only be known to the payer and the recipient.
In online scenarios, only participating banks will be able to identify users, including for compliance with anti-money laundering requirements.
Separately, Cipollone dismissed concerns that the digital euro would replace cash. He insists that the new tool should complement cash where it is not effective, such as in online purchases. As an argument, he pointed to an ECB public survey on the new euro banknote design.
Previously, the Austrian digital rights group Epicenter.works and other organizations criticized the digital euro project. They claimed that privacy guarantees rely too heavily on institutional promises rather than technical mechanisms.
On July 9, the European Parliament approved its position on the Single Currency Package, after which discussions began with the EU Council and the European Commission on further actions.
The ECB expects the regulation to be adopted by the end of 2026. The regulator plans to be ready for a potential first issuance of the CBDC in 2029, with a decision promised only after the document’s approval.
Earlier, the ECB selected 36 banks and payment companies to participate in a closed pilot of the digital euro.
