Privacy key for digital euro success, says EDPB

While the development of a digital dollar slowly continues in the United States, the Old Continent is also exploring the creation of a digital euro that will serve as a digital version of the euro.

The project is in its earliest of stages, and a number of agencies are weighing in with their thoughts on it.

Agencies like the European Data Protection Board (EDPB) has issued a call for EU institutions to uphold privacy when designing a digital version of the euro. The agency is ready to provide advice on data protection matters surrounding the project.

The European Data Protection Board was established in 2018, and is tasked to facilitate the implementation of the General Data Protection Regulation (GDPR). It also advises the European Commission on related matters and disputes between national authorities.

The EDPB shared its views on the privacy and data protection aspects of a digital euro in a letter addressed to European Union institutions. The independent body insists that ensuring privacy and data protection will be decisive for the success of a project to digitalize the common fiat currency of Europe.

As noted in the announcement published on its website:

“A very high standard of privacy and data protection is crucial to reinforce the trust of end users and should be considered a distinctive element in the offering of a digital euro, representing a key factor of success.”

The agency adds that its concerns should be taken into account during the design stage for the CBDC of the Eurozone.

EDPB recommends, in the document, conducting a high-level data protection impact assessment as well. And the body indicates its readiness to provide advice to the ECB and other EU institutions involved in the development of the digital euro.