Will Europe’s Digital Euro Really Protect Privacy?

CoinDesk
CoinDesk

30 Jun 2023 4:45 PM

EU officials pay lip service on data rights, but its proposals for a CDBC don’t offer much reassurance for users, says CoinDesk’s Michael Casey....

  • The European Commission proposed regulations for a future central bank digital currency (CBDC) that claims to protect privacy.
  • However, a review of the proposal reveals record-keeping provisions that challenge these privacy intentions.
  • European governments have shown a lack of commitment to real privacy in digital money, wanting the appearance of privacy while retaining the power to uncover user identities.
  • Privacy-preserving CBDC models are far from the anonymity of physical cash.
  • Recent crackdowns on open-source privacy projects indicate low tolerance for private, non-monitored transactions.
  • The enforcement against privacy coin Zen and the alteration of its code to remove privacy protections is seen as a boneheaded move.
  • Privacy tech is crucial in the era of artificial intelligence and data manipulation.
  • Compliance rules for government surveillance of financial activity have created a complex web of compliance.

The sentiment of the article is critical and skeptical towards the European Commission's proposed regulations and the lack of commitment to real privacy in digital money.

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What are the record-keeping provisions in the European Commission's proposal for a central bank digital currency?How do European governments approach privacy in digital money?Why are privacy-preserving CBDC models different from the anonymity of physical cash?What recent crackdowns on open-source privacy projects have occurred?Why is privacy tech important in the era of artificial intelligence and data manipulation?

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