EU data protection regulators have urged anonymity for small transactions with the digital euro.

On October 18, the European Data Protection Board and the European Data Protection Supervisor issued a joint statement on regulating the digital euro as proposed by the European Commission in July 2023. The regulators have made several recommendations to improve personal data protection requirements. European Union Central Bank Digital Currency (CBDC).

The authorities proposed to clarify the proposed verification process for the maximum amount of digital euros allowed to be held by a personal account. The current draft would allow the European Central Bank (ECB) and national central banks to establish a single point of contact for each user's data. Both authorities recommend an assessment to determine the need and affordability of a single access point. They emphasize that it is possible to use decentralized storage technical measures for these accounts.

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The regulators also point to a lack of foresight in CBCC's fraud detection and prevention system. They recommend considering “less intrusive measures” in terms of data protection.

The authorities “strongly recommend” to establish “privacy limits” on online transactions, below which offline and online low-value transactions are not subject to anti-money laundering monitoring and the fight against the financing of terrorism. However, they did not come up with a specific amount, only mentioning the scope of the transaction, which covers “low value intraday trading”.

This week the ECB Following a two-year investigation, the Governing Council has announced the “stage of preparation” for the Digital Euro project. The preparatory phase will last two years and will focus on finalizing regulations for the digital currency and selecting potential issuers.

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