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Digital Euro: The ECB seeks to remove the anonymity of the transactions with the virtual currency

Digital Euro
TL;DR Breakdown

• Legislators at ECB believe that the anonymity of the CBDC encourages money laundering
• Digital Euro could maintain its anonymity according to the EU rules

Recently the European Central Bank, ECB, showed a report based on the operations of the Digital Euro project developed for 2020. According to the European bank, the digital token anonymity must be analyzed and removed from the project because of the policies it shares with the EU.

Since 2020 the ECB has discussed creating a CBDC or bank-issued digital currency. However, the project has been absent for several years, bringing hard work for its legalization. The CBDC would utilize the growing blockchain network, anonymity in transactions, and flexibility to send money across borders.

Anonymity in transactions with the Digital Euro could be changed

Digital Euro

The entire banking cabinet in Europe met to discuss the Digital Euro future, alleging that part of its structure should be rebuilt. The ECB said that confidentiality in the CBDC should be removed because this encourages money laundering, financial support for terrorism, and virtual scams.

According to the crypto-companies agent, Hansen Patrick, ECB has several alternatives to improve the CBDC security. Hansen suggests that BasePrivacidad would enter the list of priorities for the good functioning of the token without the confidentiality laws being eliminated. The crypto expert indicates that CBDC clients should comply with the regulations imposed on CFT or support terrorism and AML.

Among Hansen’s other suggestions is that the minimum transactions with Digital Euro should remain confidential. The regulatory authority would maintain its commitment to customers to follow the crypto scheme. However, he would be on the lookout for high-profile transactions that could be linked to some illegal act.

ECB shows its disagreement about the CBDC anonymity

Digital Euro

According to the ECB, the Digital Euro should not be anonymous as it is an undesirable feature. But the personal information of CBDC traders should be easily accessible on “Eurosystem,” a dedicated platform for the pegged token. In this way, you will have an official report on the transactions, commission increases, and possibly illegal acts with the currency.

Legislators seeking to promote a confidential crypto project indicate that privacy, if viable, has to be put into practice.

CBDCs are nothing more than virtual currencies based on the technology shared by the blockchain network. However, they are currencies backed by a central bank, which in this case would be the ECB.

The Digital Euro would have a value equal to the Euro, only that its operations can be completed from a dedicated website and not from a traditional bank account. This currency facilitates euro transactions between foreign countries while maintaining its value.

Carisbel Guaramato

Carisbel Guaramato

An avid content creator for over 4 years, Carisbel spends her time on blogs and technology news. She honed her skills as a social communicator and now finds crypto and blockchain news events worldwide for transmission through Cryptopolitan's neutral and incisive way.

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