Beautiful Virgin Islands

Monday, Sep 15, 2025

Privacy, Stability, & Monetary Sovereignty: EU Central Bank Board Member Defends Digital Euro Idea

Privacy, Stability, & Monetary Sovereignty: EU Central Bank Board Member Defends Digital Euro Idea

In an era of increased interest in cryptocurrencies, both unregulated items, like Bitcoin, and "stablecoins", governments around the world are seeking ways of keeping up to date with modern trends. Several central banks are currently exploring the idea of introducing sovereign digital currencies.

The introduction of a digital euro, if it happens, will have a positive impact on both consumers and governments, a member of the European Central Bank's (ECB) Executive Board, Fabio Panetta has suggested in an interview with the Financial Times. The board member put a strong emphasis on the projected digital euro being able to better protect consumers' private data than any "stablecoin" – a privately issued cryptocurrency backed by real assets, unlike decentralised ones such as Bitcoin.

"If the central bank gets involved in digital payments, privacy is going to be better protected […] because we are not like private companies. We have no commercial interest in storing, managing, or monetising the data of users", the ECB board member stressed.

According to Panetta, the ECB believes that people's main concern when it comes to the digital euro is the erosion of privacy. He claimed that unlike privately established cryptocurrencies, such as Facebook's planned stablecoin Diem, no person in the transaction chain will have access to the full information about the transaction, meaning no one will be able to easily pin a specific transaction to a person.

He added that smaller transactions of up to 70 or 100 euros will be completely anonymous as they will be done via a Bluetooth connection between two devices. Larger transactions, however, will have some level of government oversight in order to prevent the use of the digital euro, an electronic version of the EU's currency, for money laundering and other illicit activities.

"A payment can be reconstructed [after the event] if the police want to assess whether there's been any illicit activity", Panetta explained.

'Threat' to EU Monetary Sovereignty


In contrast to the planned digital euro, decentralised cryptocurrencies like Bitcoin or Ethereum, already provide complete anonymity for both sides of the transaction regardless of its size, at least to the point before a person decides to convert their cryptocurrency into an ordinary central-bank issued currency. This is why unregulated cryptocurrencies have recently been favoured by those involved in criminal activities, such as drug trafficking or ransomware and why many governments around the world, as well as the ECB, have considered ways of countering the decentralised cryptos – from outright bans to offering a centralised alternative.

"If people do want to pay digitally and we do not offer them a digital means of payment, somebody [else] would do that", Panetta elaborated.

The emergence and growing popularity of unregulated cryptocurrencies are perceived as a "threat" that can undermine the EU's monetary sovereignty, the member of the ECB's Executive Board stated. The digital euro might become the central bank's answer to this challenge, he explained.

Yet, its introduction is not a done deal as discussions are still underway. The initiative is opposed by commercial banks, which expect an exodus of client money in favour of digital euro tokens. Such a scenario might prompt a crisis due to the loss of liquidity. Fabio Panetta, however, assures that the ECB won't let the digital euro undermine commercial banks' stability too much. One of the planned ways to do that is by either limiting the amount of euros a person can hold in their digital wallet to 3,000 or by incentivising people against having sums above that limit, the ECB board member said.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
Tens of Thousands of Young Chinese Get Up Every Morning and Go to Work Where They Do Nothing
The New Life of Novak Djokovic
The German Owner of Politico Mathias Döpfner Eyes Further U.S. Media Expansion After Axel Springer Restructuring
Suspect Arrested: Utah Man in Custody for Charlie Kirk’s Fatal Shooting
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
Pig Heads Left Outside Multiple Paris Mosques in Outrage-Inducing Acts
Nvidia’s ‘Wow’ Factor Is Fading. The AI chip giant used to beat Wall Street expectations for earnings by a substantial margin. That trajectory is coming down to earth.
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
On the Anniversary of Queen Elizabeth’s Death: Prince Harry Returns to Britain
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Murdoch Family Finalises $3.3 Billion Succession Pact, Ensuring Eldest Son’s Leadership
×