ECB President Said Digital Euro Would Protect Users’ Privacy

According to reports, Christine Lagarde, ECB president, promised that details of digital Euro users are not for commercial purposes. She added that the agency is bent on prioritizing customers’ privacy which is one of the core values of the CBDC.

ECB President Claimed They Won’t Commercialize CBDC User’s Data

During a recent conference in Frankfurt, Germany, the president of the Europeans Central Bank (ECB), Christine Lagarde, commented on the privacy of digital euro users. She stated that, unlike the contemporary transaction method where payments platform can harvest users’ detail and commercialize it, the digital euro would protect users’ details from such exploitation.

Furthermore, she claimed that the potential European Central Bank Digital Currency that the ECB issued is not for commercial purposes. According to the report, she made her claims during the conference in Germany when she was explaining the potential of a CBDC. 

She added that central banks are not allowed to commercialize people’s information; hence transaction details would be safe with them. In addition, the ECB president commented on the core features of a CBDC discovered back in 2021 during an investigative survey. 

Christine Said CBDC Is Privacy Oriented

According to the survey, most of the respondents value their privacy and hence suggested that the CBDC should prioritize users’ privacy. Christine Lagarde added that the European CBDC is mainly a bank currency with moderate centralization. 

The moderate centralization feature of the CBDC gives the authorities access to transaction details. However, the ECB president assured us that they would not commercialize people’s components, unlike some data companies do.

American Delays CBDC Development While Europe Test-run App

Meanwhile, the American financial authorities also announced that they would follow in Europe’s footsteps by prioritizing privacy if they ever launched their U.S. CBDC. Jerome Powell, the U.S. Federal Reserve Chairman, recently stated that privacy protection, identity verification, Interoperability, and intermediation are the four core attributes of a CBDC. 

Nonetheless, he revealed that the central bank of the United States of America is not ready to continue with its CBDC currently. On the contrary, the European Central Bank had already hired Amazon and four other giant tech companies to handle the digital euro application prototype. The five big tech firms will complete the first ever CBDC app model before mid-2023, as stated in the announcement.

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