A digital euro will provide users with the maximum level of privacy that current technology allows, according to European Central Bank executive board member Piero Cipollone. The remarks mark one of the bank's firmest responses to concerns that a central bank digital currency would enable Frankfurt to monitor citizens' spending habits.
In an interview published Monday by the ECB, Cipollone addressed questions regarding transaction tracking. He stated that offline payments would occur directly between individuals, with transaction details remaining visible solely to the payer and the payee. For online transactions, the Eurosystem would be unable to identify the parties involved in sending or receiving payments, though the commercial banks facilitating the transaction would retain that visibility for anti-money laundering and regulatory purposes.
Commercial banks distributing the digital currency would maintain the same identity and reporting obligations they currently enforce. An ECB spokesperson previously noted that while privacy features are integrated, the digital currency remains subject to standard financial rules.
Meanwhile, the legislative process continues to advance. The European Parliament established its negotiating position in July, with ongoing discussions targeting a final deal with member states by the end of 2026. Additionally, the ECB has selected 36 payment providers—including Deutsche Bank, UniCredit, and Revolut—to participate in a 12-month pilot scheduled for the second half of 2027, with an initial issuance targeted for 2029.
In contrast, the United States adopted a different approach regarding central bank digital currencies. The 21st Century ROAD to Housing Act, which became law on July 11, prohibits the Federal Reserve from issuing a CBDC until the end of 2030, after which explicit congressional authorization would be required. The legislation exempts open, permissionless, and private dollar-denominated currency, leaving regulated stablecoin issuers unaffected.
Cipollone has previously cautioned that failing to adopt a digital alternative could carry costs for Europe. In July, he warned that increasing reliance on stablecoins could deprive European banks of retail deposits, compounding the loss of fees and transaction data already moving toward mobile payment platforms.
