The European Central Bank issued the first update on the development of CBDC
The European Central Bank (ECB) released its first progress report on the June 24 update on developing a central bank digital currency (CBCC).
Privacy provisions were a major focus, the ECB said.
Additionally, under the ECB's CBDC framework, payment service providers cannot use users' financial information for commercial services without obtaining express consent from the individual who generated the financial information.
Methods of conducting offline transactions are also outlined. The update briefly touched on providing support for offline transactions between parties directly without the need for a third-party intermediary. These payments will be based directly on consumers' smartphones and not yet “smart cards” payment devices powered by batteries or relays to sync transactions with the CBCC blockchain.
The report provided CDC's first technical and regulatory framework for the newly formed Rulebook Development Group. The framework is concluded by giving a time frame for completing the draft. According to ECB The Rulebook Development Group will present the final first draft by the end of 2024 in consultation with service providers, infrastructure developers and the general public.
Related: Iran to launch public CBDC pilot in June
The digital elephant in the room
As anti-CBDC sentiment continues to grow in the crypto community, privacy issues and basic human liberties remain concerns regarding the widespread use of central bank digital currencies.
During the recent Oslo Freedom Forum, speakers and attendees explored instances of state actors misappropriating private property to suppress dissent. These examples provide a taste of the excess of regulation and government seen in government-controlled blockchain currencies.
In the year In a 2023 report from Trezor, 73% of respondents said they would be concerned about the privacy issues raised by the CBCC and the unprecedented control it would allow governments to monitor consumer behavior.
Critics argue that these risks far outweigh the benefits of CBCC when looking at stablecoins. This raises questions about the central bank's renaissance of digital fiat and problems with CBCC adoption.
American lawmakers took a stand
US lawmakers and politicians are leading the charge against CBCCs. Former President Trump has vowed to defend the implementation of the CDC in the United States, a position that has increasingly crossed party lines.
In May, the US House of Representatives passed the CBDC Anti-Surveillance Act, which highlights the serious threat that centrally controlled digital currency poses to freedom in open societies.
Magazine: The Truth Behind Cuba's Bitcoin Revolution: An On-the-Ground Report.
