Data protection is the key to a successful digital euro, says the data protection authority – regulating Bitcoin News
The European Data Protection Board (EDPB) has urged the EU institutions to respect privacy when designing a digital version of the euro. The agency is available to advise you on data protection issues relating to the project. Meanwhile, an ECB chief has promised that the digital euro will protect users’ privacy.
EDPB insists that data protection should be a priority in the Eurozone CBDC project
The EDPS has given its views on the privacy and data protection aspects of a possible digital euro in a letter addressed to the European Union institutions. The independent panel insists that ensuring privacy and data protection will be critical to the success of a project to digitize the common European fiat currency. In an announcement posted on its website, the board emphasized:
A very high level of privacy and data protection is essential to instill end-user trust and should be seen as a characteristic element of the offering of a digital euro, which is a key factor for success.
The agency added that its concerns should be taken into account during the drafting phase for the Eurozone Central Bank Digital Currency (CBDC). In the document, the EDPB recommends that a data protection impact assessment should also be carried out at a high level. The body signals its readiness to advise the ECB and other EU institutions involved in the development of the digital euro.
The European Data Protection Board has the task of facilitating the implementation of the General Data Protection Regulation (GDPR). It was set up in 2018 to replace the Article 29 Data Protection Working Party. The EDPS issues guidelines and recommendations on the application of the GDPR, which came into force in May of the same year. It also advises the European Commission on related matters and settles disputes between national authorities.
Digital euro to strengthen privacy, official ECB vows
On the CBDC front, the eurozone’s monetary regulator is lagging behind other major central banks such as those of China, Russia and the US. Earlier this month, the ECB said in a report that a digital euro may be the global appeal of. could increase the European fiat currency. A decision on whether to proceed with a digital euro project is expected in mid-2021, officials said earlier this year. The Governing Council will discuss the matter at a meeting in July, ECB Executive Board member Fabio Panetta recently told the Financial Times.
Panetta believes that the ECB’s involvement in digital payments would better protect privacy as the bank is not a private company. “We have no commercial interest in storing, managing or monetizing user data,” the official stated. A digital euro would also help the euro area deal with the threat posed by other digital currencies. While Panetta called cryptos like Bitcoin “very dangerous animals”, he also warned against fiat-backed coins like Facebook’s Diem. He believes that because of the potential volatility of their reserves, there is “an inherent instability in the functioning of these coins”.
The board member revealed that the ECB has already tested mechanisms to separate identities from payment details as well as offline payments for small amounts, where data is only recorded in the wallets of the sender and recipient. Such transfers, for example up to 100 euros, could be made via Bluetooth. “For very small amounts, we could really allow anonymous payments, but in general confidentiality and privacy differ from anonymity,” said Fabio Panetta. He stated that most transactions would be subject to controls to prevent money laundering, terrorist financing or tax evasion.
What are your expectations for the future of the digital euro project? Do share your thoughts in the comments section below.
Photo credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
source https://bidsfor.me/data-protection-is-the-key-to-a-successful-digital-euro-says-the-data-protection-authority-regulating-bitcoin-news/
Comments
Post a Comment