Europe is proceeding with plans to launch a digital currency, saying it will offer “maximum privacy” amid growing concerns over government surveillance.
The European Central Bank (ECB) has sought to address surveillance fears related to the digital euro, saying it will offer more privacy than existing bank transfers.
The central bank says that a digital Euro currency will be incapable of linking specific individuals to their transactions, whether conducted online or offline.
The reassurances come as public opposition to the digital euro has grown over fears that it will give governments the ability to monitor how citizens spend their money.
The European Central Bank stresses that only banks involved in online transactions will be able to identify users, and only for anti-money laundering purposes.
Additionally, the central bank is reassuring people that a digital euro will not replace physical cash, saying it remains committed to keeping cash in circulation.
The European Parliament officially approved the creation of a digital euro in July of this year, paving the way for its rollout in 2029.
European Central Bank President Christine Lagarde recently said in an interview that the digital euro and physical cash will coexist in years to come.
Bitcoin (BTC), the largest cryptocurrency by market capitalization, is trading at $78,400 U.S. on Aug. 26.
