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ECB Confirms Offline Digital Euro Privacy as Banks Track Online Payments
The ECB confirmed offline digital euro payments will be private, while banks track online transactions. Cipollone cited holding limits and deposit flight risks. Vote on legal framework pending.
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The European Central Bank confirmed that offline digital euro payments will offer privacy comparable to cash, while commercial banks will retain visibility into online transactions. Piero Cipollone, an ECB executive board member, made the statement in a presentation on the central bank's digital currency plans.
Cipollone said the offline mode stores transaction records only on users' devices, preventing the Eurosystem from linking identities. Online payments, by contrast, allow financial intermediaries full access to transaction data, which Cipollone framed as a requirement for anti-money laundering compliance.