With the ability to carry out anonymous transactions, just like cash, you will provide users with digital euros according to the specifications given to them by the European Central Bank.
The ECB published its first progress report on the preparation phase for the digital euro, which started on 1 November 2023, with the aim of: to lay the groundwork for the possible issuance of a digital currency.
According to the ECB report, the design of the digital euro includes an offline function that it will offer users a level of privacy for cash-like physical store and person-to-person payments.
That is, when a user pays offline, personal transaction details will be known to the payer and payee only and will not be shared payment service providers, the Eurosystem or support service providers.
In recent months, The ECB has agreed on the technical features needed to ensure that online digital transactions in the euro will ensure even higher standards of privacy. from current digital payment solutions while providing strong end-user protection against fraud.
At the same time, modern means will be used, including data pseudonymization, hashing and encryption, ensure that it will not be able to directly link digital euro transactions to specific users.
According to current practice. payment service providers will only have access to the personal data necessary to ensure compliance by EU laws such as anti-money laundering regulations.
Payment service providers to use the data for commercial purposes will require users’ express consent. As the digital euro issuer and payment infrastructure provider, the ECB will be supervised by independent data protection authorities to monitor its compliance with the European Union Data Protection Regulation (EUDPR) and the General Data Protection Regulation (GDPR).
Anonymous transactions
The Eurosystem is developing an offline function that will allow users of the digital euro to pay, without internet connection after preloading their digital account with euros via the Internet or an ATM.
Payments will be made directly between offline devices, e.g. mobile phones or payment cards belonging to users participating in the transaction; without relying on third parties.
Also, the ECB is exploring technical tools already on the market that could allow digital euro transactions to be settled offline directly on end-user devices.
However, the ECB has particularly focused on delivery and financing patterns and Offline cashout of euro digital wallets including how anti-money laundering and anti-counterfeiting.
For offline payments: users will be able to use their mobile devices, while the Eurosystem is also investigating the possible use of battery-powered smart cards or non-powered smart cards via a communication bridge device.
The effective implementation of offline digital euro on mobile devices will ultimately depend on the requirements set for equipment manufacturers and manufacturers; electronic communications service providers Regulation of the digital euro.
Digital euro holding limits
The design of the digital euro should ensure this can be widely used as a means of payment, while maintaining financial stability and monetary policy transmission.
For this reason, there will be restrictions on the possession of digital euros for each individual, while dealers, they will have a zero possession limit ie they will not be able to accumulate digital euro reserveshowever, they will be able to make certain types of payments.
In addition, users they will be able to link their digital wallet (euro) to a commercial bank accountallowing them to make payments using their digital euro wallet without having to load it with money first.