Data Protection Bodies Call For ‘Privacy Threshold’ in Digital Euro Transactions

Ensuring low-value digital euro transactions usually are not traced is among the suggestions made by two knowledge safety companies within the EU. The unbiased our bodies have offered their joint opinion on the proposed regulation for the upcoming digital model of Europe’s widespread fiat foreign money.

Independent EU Regulators Insist on Embedding Data Protection within the Design of the Digital Euro

The European Data Protection Board (EDPB) and the European Data Protection Supervisor (EDPS) have made a number of recommendations on how to make sure high-level safety for the private knowledge and privateness of customers of the longer term digital euro.

The said purpose of the eurozone’s central financial institution digital foreign money (CBDC) is to offer Europeans with an alternate means to make on-line and offline funds, complementing money. The authorities welcomed the concept customers may have a selection and that the proposal for an EU regulation on the institution of the digital euro addresses many knowledge safety elements.

However, the companies consider that knowledge safety needs to be embedded within the digital euro’s design itself and recommend additional enhancements to ensure that the rights to privateness and safety of non-public knowledge are successfully preserved. EDPB Deputy Chair Irene Loizidou Nicolaidou emphasised:

A excessive normal of privateness and knowledge safety is instrumental in gaining residents’ belief on this new digital foreign money.

Introducing a “privacy threshold” beneath which neither offline nor on-line low-value transactions with digital euro might be traced for anti-money laundering or counter-terrorism financing functions is among the steps the EDPB and the EDPS “strongly recommend.”

The two organizations are additionally objecting to the proposed institution of a single entry level to confirm that particular person digital euro holding limits usually are not exceeded. The plan is to conduct this verification by processing identifiers of the digital euro customers and their holding limits.

The knowledge safety our bodies recommend “assessing whether the single access point is necessary and proportionate, underscoring that technical measures allowing for a decentralized storage of these identifiers are feasible, as an alternative.”

After two years of investigation, the European Central Bank (ECB) announced on Wednesday its resolution to maneuver to the following “preparation phase” of the digital euro venture. The financial authority assured in a press release that knowledge safety can be a precedence and that the Eurosystem wouldn’t have the ability to hyperlink cost data to particular person customers.

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