EDPB calls for privacy safeguards in EU’s digital euro draft legislation
The European Data Protection Board (EDPB) has called for privacy thresholds for online transactions involving the digital euro.
The European Data Protection Board (EDPB) calls for stronger privacy safeguards in the digital euro legislation proposed by the European Commission. The European Central Bank is set to advance its preparations for a digital euro, though consumers worry about potential cash displacement and increased spending tracking by authorities.
EDPB has strongly advocated for the addition of privacy thresholds for online transactions involving the digital euro to ensure that both online and offline transactions of low value are not tracked to prevent money laundering and terrorist financing. EDPB also stated that the draft law needs to clarify data protection responsibilities for the European Central Bank (ECB) and payment services providers (PSP). This should encompass specifying the legal bases and the types of personal data that can be processed for issuing, distributing, and using the digital euro. The EDPB also expressed strong support for the option that digital euro users will always have the choice to pay with digital euros or cash.
Why does it matter?
The plea for reinforced privacy measures in the EU’s draft legislation on the digital euro is of paramount importance in today’s rapidly evolving digital landscape. This call to action from the EU for data protection highlights concerns that the adoption of the digital euro may lead to the phasing out of cash, potentially enabling authorities to monitor individual spending patterns. Striking a balance between technological advancement and preserving individual privacy rights is crucial in this digital transformation of the financial sector.