Digital euro's privacy promise not worth a centralized system, Oasis exec says
May 4, 2021. Summarized by summa-bot.
Compression ratio: 37.1%. 1 min read.
The European Central Bank is making all the right noises concerning the privacy features of a potential CBDC. But just how private will they allow it to be?
The responses that came back suggested privacy was the number one concern surrounding the issuance of a central bank digital currency.
With 43% of respondents highlighting privacy as the core requirement, Panetta declared that the digital euro could meet those requirements without relaxing security standards.
“As I have already mentioned, privacy emerges as the most important feature of a digital euro.
Indeed, the ECB has been exploring privacy enhancing techniques since even before the concept of a digital euro emerged.
“The EU has had a good track record around consumer privacy but it’s still a centralized system,” Fauvre-Willis told Cointelegraph, adding, “Instead of enabling this via a centralized bank, why not empower a decentralized protocol to do this instead?
What’s more, the natural desire for human beings to take the easiest path available could see users flock to the digital euro, regardless of how much privacy they give up in the process, says Fauvre-Willis.
“In regards to people adopting the digital euro, unfortunately I think ease will win over privacy alone,” said Fauvre-Willis.
The ECB is still conducting research into the possibility of a digital euro, with the final decision expected to be made by summer 2021.