The ECB introduces "anonymous" digital euro where the public opposes "slavecoins"

The ECB introduces “anonymous” digital euro where the public opposes “slavecoins” – Mail Bonus

The European Central Bank (ECB) continues to support the Central Bank’s digital currency program (CBDC), although Europeans do not seem to be too positive about the digital euro.

The European Central Bank has issued another working paper on the digital euro, which provides a comprehensive technical analysis of the potential European CBDC and its position in the current financial system.

Released on May 13, the working paper aims to examine issues such as financial intermediation, payment options and privacy in the digital economy, and provide a number of related algebra-based conclusions.

The study suggests that “CBDC anonymously” is preferable to traditional digital payments such as bank deposits, but that it “could be redeemed” by digital currencies or “payment tokens” issued by technology giants.

“This risk would be particularly tangible if these platforms compete with banks in the financial services market. However, the possibility of data sharing measures may lead to a broad approval by the CBDC, “the working document states.

According to the ECB, one of the main problems with cash is that it cannot be used for more efficient online transactions while maintaining anonymity. On the other hand, you can use bank deposits online but do not provide sufficient anonymity.

Finally, digital currency issued by technology platforms “allows traders to hide from banks but enables venues to curb competition,” the ECB wrote, adding:

“An independent digital payment instrument – CBDC – that allows agents to share their payment data with selected parties can overcome any friction. […] The introduction of anonymous CBDC enables merchants to prevent banks from obtaining information from cash flows.

Although the ECB continues to promote the potential digital euro through anonymity, Europeans are not entirely optimistic about any CBDC. According to official responses from another consultation on the digital euro, a majority of Europeans oppose the CBDC’s adoption in the European Union.

The consultation was launched on 5 April and has collected 14,110 comments as of this writing, with many opposing the idea of ​​a central bank-controlled digital currency and the associated lack of user privacy. Some online commentators have even referred to the CBDC as “slavecoin”, as opposed to “digital slavery” which may be promoted through such financial instruments.

“The digital euro in the sense of the EU reference is not in line with privacy or data protection rules. […] A control system for the small guarantors requires, “wrote the Austrian citizen Schmidl Andreas.

“I am completely opposed to the introduction of the digital euro because I do not want to be dependent on the internet when I buy something. “I completely reject the digital euro, because it leads to total control and restricts our fundamental rights and freedoms,” wrote another anonymous user.

As previously reported by Cointelegraph, the issue of user privacy has emerged as one of the biggest problems associated with central bank digital currencies. This quickly became a major problem for international regulators and governments as they need to prevent illegal financial activities while maintaining confidentiality.

According to a previous public consultation on the digital euro, published in April 2021, user privacy was considered the most important feature of the digital euro by both citizens and professionals in the European Union.

Connected: The proposed digital euro design lacks privacy options, the ECB’s presentation shows

There are various other problems related to the digital euro, including the alleged lack of demand. Jonas Gross, chairman of the Digital Euro Association, told the Cointelegraph in April that the main goal of the digital euro was still unclear. Last year, PVA Urbiola, the regulator at the Spanish bank BBVA, argued that it was not clear exactly what kind of demand the digital euro’s customers would meet.

According to European Commissioner for Finance Mairead McGuinness, the ECB is still expecting a CBDC prototype sometime in late 2023.