London Daily

Focus on the big picture.
Thursday, Oct 23, 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

0:00
0:00
Close
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
×