European Data Regulator Offer Recommendations for Digital Euro

Recommendations for Digital Euro Offered by European Data Regulators

On October 18, the European Data Protection Board and the European Data Protection Supervisor issued a joint statement regarding the regulation of a digital euro as proposed by the European Commission in July 2023. Improvements in personal data protection for the central bank digital currency (CBDC) were recommended by them. The suggestions include clarifying the verification process for maximum digital euro holdings per individual account, assessing the need for a singular access point to user data, and employing decentralised storage methods for identifiers. They also emphasised the importance of considering less intrusive measures for deceit prevention and establishing a "privacy threshold" for low-value transactions to combat money laundering and terrorism financing. The ECB started the "preparation phase" for the digital euro project, lasting two years to finalise CBDC rules and select issuers.