ECB called the anonymous digital euro undesirable

This data is provided in the bank’s presentation dedicated to the concept of asset design

05.05.2022 - 09:25

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What’s new? The European Central Bank (ECB) has called the anonymity of digital euro users an undesirable option for the development of the further design of the asset. Development Manager at Unstoppable, a DeFi solutions development company, Patrick Hansen reported this citing the bank’s presentation.

1/ Roughly a year ago, EU citizens responded to the ECB consultation with a clear message that privacy is by far the most important of any digital euro features.The ECB has now published the privacy options on the table in a new presentation 👇 https://t.co/sRcaqr89BV pic.twitter.com/WmO4WjYGfk— Patrick Hansen (@paddi_hansen) May 3, 2022

What else did Hansen report? The ECB’s presentation notes that intermediaries in the form of banks will have access to information about digital euro transactions, which according to Hansen is not conducive to maintaining a high degree of privacy. The document also notes that the anonymity of digital euro users is undesirable because it makes it impossible to control the money supply in circulation and prevent money laundering.

The main conclusion Hansen draws from the presentation is that anonymous offline payments (as in the case of cash) are unlikely to be implemented.

What events happened before? In April 2022, the ECB launched a public survey to find out the opinions of citizens of European countries regarding the digital euro project. Most of the respondents do not agree with the concept of the digital euro as a new payment system, while many stated they prefer a more private payment method, cash.

For an overview of anonymous cryptocurrencies and their algorithms, see GetBlock Magazine’s article.

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