EU Data Protection Regulators Advocate for Anonymity in Small Digital Euro Transactions

On October 18, the European Data Protection Board and the European Data Protection Supervisor released a joint statement regarding the regulation of a digital euro, which was proposed by the European Commission in July 2023. The regulators outlined several recommendations aimed at improving personal data protection standards for the central bank digital currency (CBDC) in the European Union.

The authorities suggested clarifying the proposed verification procedure concerning the maximum allowable amount of digital euros that an individual can hold in their account. The current draft enables the European Central Bank (ECB) and national central banks to create a centralized access point for user data. Both entities advocated for an assessment to evaluate the necessity and proportionality of this singular access point. They highlighted that it is possible to implement technical measures for the decentralized storage of these identifiers.