According to a board member, the European Central Bank (ECB) is better able to protect user privacy than private companies with regard to the introduction of the digital euro.

In one interview Fabio Panetta told the Financial Times on June 14th that the ECB had no commercial interest in storing, managing or monetizing user data.

Fabio Panetta – Member of the Executive Board of the ECB

According to a recent ECB survey, data protection issues relating to the digital euro and security concerns are the focus of Europeans.

“When the central bank interferes with digital payments, privacy is better protected. We are not like private companies. “

Panetta also said that having their information processed by a public institution would make people feel more secure, adding that the bank would do better.

“There are many ways to protect confidential data and at the same time allow legal controls to avoid illegal transactions, for example in connection with money laundering, financial terrorism or tax evasion.”

When asked if he saw a threat from cryptocurrencies or other central bank digital currencies, Panetta said there was an external “potential threat” that includes the development of a global stablecoin that could transform people’s view of digital instruments.

“I think this is a fundamental change in the way payments will work in the future, both for the financial system and for society at large. That arouses great interest. “

ECB President Christine Lagarde said a digital euro will likely be launched in the middle of the decade, while a prototype has started with distributed ledger technology.

Annie

According to Coindesk

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