European authorities are trying to reassure the public that the digital euro, a proposed central bank digital currency, will not be a surveillance tool or a conspiracy. They say the project will be democratic, open, and transparent and will complement cash as a means of payment.
The digital euro is a potential digital form of central bank money that would allow people and businesses to pay electronically with a secure and widely accepted form of public money in the euro area.
The European Central Bank (ECB) would issue the digital euro and coexist with euro banknotes and coins.
Some fear that the central bank or other authorities could track or monitor their transactions or personal data, making privacy a major concern in discussions regarding the digital euro.
Some also worry that the digital euro could be used for political or economic manipulation or coercion.
The EU’s Response to the Privacy Concerns
EU officials are trying to quell these fears by stressing that the digital euro will not be a “Big Brother” project or a conspiracy.
They say the project will be subject to democratic oversight and public consultation and respect users’ privacy and data protection rights.
“It will not be a conspiracy,” Paolo Gentiloni, European Commissioner for Economy, said at a press conference on Thursday.
He spoke following a eurozone ministers’ meeting where he presented a digital euro proposal to finance ministers, who will begin negotiations in September.
“It will be a democratic, open, transparent process in the European Parliament and with European governments,”.
Paolo Gentiloni
Paschal Donohoe, president of the Eurogroup at the European Council, told reporters,
“Any citizen of any stakeholder who is interested in us will have an opportunity to see how the project is moved forward,”
At the same time, the European Parliament will also negotiate the file.
The comments come as finance commissioner Mairead McGuinness said last month that the digital euro is “not a Big Brother project.”
The Benefits of the Digital Euro
According to EU officials, the digital euro represents the next evolutionary step for cash.
A CBDC for Europe would provide a payment system across the bloc with “even more convenient ways for Europeans to pay each other to pay their businesses and to access goods and services within Europe,” Donohoe said.
The digital euro could also support the EU’s digital finance and retail payments strategies and foster efficiency, innovation, and resilience in the EU’s digitalizing economy.
Lastly, the digital euro could increase the international role of the euro and support the EU’s open strategic autonomy.
