Citizens see a central bank digital currency as a threat to their freedom and privacy. There is a conflict between the protection of private data and the laws under study.
European citizens reject the idea that the European Central Bank (ECB) issues a digital euro. That is evident in the more than 10,000 public comments on the official website of the European Commission.
The institution that promotes the laws to govern the eurozone undertook a public consultation to know the opinion of citizens. People had to comment on the possible establishment and regulation of a central bank digital currency (CBDC).
The European Commission will keep the consultation open until June 14th, but most comments favor ruling out the digital euro. Those opinions indicate that people prefer to use more private payment methods, such as cash.
An anonymous person expressed that he rejects the digital euro as nobody needs it. He said it would just be a tool to eliminate cash and would make people dependent on the central government.
Other Europeans like Dieter Schömer from Germany believe that the digital euro would risk freedom. Its issuance by a central financial institution would mean that the state would exert greater control over citizens.
Christy Márquez, who lives in Germany, thinks that the ECB should not abolish cash as it means freedom. She commented that a CBDC could be convenient but controllable, which should not happen with the wrong people or governments.
The European Commission extended the reception of comments two months after the ECB announced the start of a legislation process. The financial institution aims to create a regulatory legal framework for implementing a digital euro.
The different regulatory entities and the community are still stating their opinions. The European Commission seeks to measure the possible risks and benefits of issuing a CBDC. The enactment of that law to launch this digital asset might occur in 2023
One of the objectives of the ECB is the issuance of a digital euro for European citizens to have along with cash. In other words, the financial institution does not contemplate abolishing bills and coins that are in use today.
However, the public consultation contains many comments from people who fear that the launch of a European CBDC will imply the end of cash.
A Digital Euro Would Hurt the Privacy of Citizens
The comments collected reveal that the European inhabitants feel a great attachment to cash. They state that this form of payment is untraceable, allows anonymity, and offers more protection of private data.
ECB researchers working to understand what a digital euro needs to gain adoption have clarified that Europeans value privacy. Fabio Panetta noted that citizens would think highly of payment options that allow controlling personal data.
Panetta, the project leader, commented that concern about the possible circumvention of regulations presents challenges with the design of a CBDC.
He explained that one of the options handled is that the digital euro allows payments in small amounts. The reason for that is that people could make anonymous transactions.
However, there is a conflict between the protection of privacy and the laws understudy, as legislators seek to approve stricter controls.
By Alexander Salazar
