Eurozone finance ministers pledge support for digital euro project, talk privacy
The finance ministers of the EU member states that adopt the European currency, the euro group, met in Brussels on Monday to mark Croatia’s entry into the eurozone as well as to discuss current affairs, from the economic situation to the euro. Talked till the policy coordination of the state funds in the area. One of the topics discussed was the initiative to issue a digital version of the euro and its progress, and a statement adopted by the forum said that government officials have vowed to continue their involvement and to continue with the informal format. President Paschal Donohoe said that what we plan to do is continue with the political response with the ECB and the Commission as they move forward in their processes as well as the recognitions that have been provided today in the Eurogroup. Many of the decisions that await have been political in nature. The Eurogroup recognizes that the introduction of the digital euro as well as the main feature and design choices require political decisions and that need to and should be discussed at the political level. In addition, the Joint Statement elaborates that the need for relevant legislation to be approved by the European Union and focused on a thorough account of it is also included in the Parliament and the Council of the European Union.
Reaffirming their commitment to support projects that are still in their examination phase which began in mid-2021, the Ministers also emphasized that the potential any future decision on release will be published only after further trial or discovery at the stage.
Following their discussions, the group stresses that the digital euro should complement, not replace, cash and make other recommendations. Central bank digital currency (CBDC) must be published with privacy dated 29th and further explain that for this to be successful it is necessary to ensure and at the same time maintain the trust of the digital and for this privacy It is an important and fundamental right. Preserving privacy by default and by design was one of the goals announced by the European Central Bank (ECB) in the report “Digital Euro – Stocktake” published this week. Keeping their views on the matter, the regulators say that the digital euro will ensure the scalability and privacy of personal data and payments. In detail, the European Central Bank will not have knowledge of the history of each of their holdings or of payment patterns. Data is only accessible to intermediaries for regulatory compliance. Further the authority insists that its central bank digital coin will not be known as programmable and noting that the final decision on a balance between its objective of privacy and other public policies will prove to be legislators. The European Central Bank also indicated that more privacy would be allowed for low-risk and offline transactions, as may be proposed.
