European Central Bank official Piero Cipollone defended the planned digital euro, asserting it will offer the maximum level of privacy possible by preventing the Eurosystem from linking individuals to transactions. While the ECB pitches the digital currency as a tool for European payment sovereignty to reduce reliance on foreign providers by 2029, civil rights groups like Epicenter.works warn that its privacy protections rely too heavily on breakable institutional promises rather than technical safeguards.
Digital euro privacy protections
- ▪The European Central Bank's planned digital euro is designed to limit transaction information available to the central bank, preventing the Eurosystem from identifying users making or receiving payments.
- ▪For online digital euro transactions, only the participating banks will be able to identify users, and solely for anti-money laundering purposes.
- ▪Offline digital euro transactions will allow payment details to be available only to the payer and payee, making them equivalent to cash transactions.
Public surveillance concerns over CBDCs
- ▪The Austrian digital rights group Epicenter.works and other civil society organizations stated in August 2026 that the digital euro's privacy guarantees rely too heavily on institutional promises rather than technical safeguards.
- ▪Lawmakers, privacy advocates, and crypto community members have warned that government-issued central bank digital currencies could expand financial surveillance and allow governments to monitor and control citizen spending.
- ▪In January 2025, United States President Donald Trump signed an executive order prohibiting federal agencies from developing or promoting a central bank digital currency, citing risks to privacy and sovereignty.
ECB official responses
- ▪European Central Bank Executive Board member Piero Cipollone stated in an August 2026 interview that the digital euro would guarantee greater privacy protection than existing bank transfers.
- ▪European Central Bank Executive Board member Piero Cipollone dismissed concerns that the digital euro would replace physical cash, pointing to a public consultation on new banknote designs as evidence of commitment to cash.
- ▪European Central Bank President Christine Lagarde stated that the digital euro and physical cash would coexist.
European payment sovereignty strategy
- ▪The European Central Bank is presenting the digital euro as a tool to strengthen Europe's payment infrastructure and reduce dependence on non-European payment providers.
- ▪European Central Bank Executive Board member Piero Cipollone stated in April 2026 that Europe's reliance on non-European payment providers for two-thirds of euro-area card transactions creates a strategic vulnerability.
Digital euro rollout timeline
- ▪The European Central Bank selected 36 payment providers to test the digital euro ahead of a pilot scheduled for 2027.
- ▪The European Central Bank has stated that the digital euro could be issued as early as 2029, provided necessary legislation is adopted and technical stages are cleared.
Legislative approval process
- ▪The European Parliament's Economic and Monetary Affairs Committee backed its position on the digital euro legislation in June 2026, and lawmakers cleared the proposal for negotiations with the Council in July 2026.
- ▪United States House lawmakers have advanced the Anti-CBDC Surveillance State Act to prohibit the Federal Reserve from issuing a central bank digital currency.
Story comments
Loading comments…