Digital Euro Will Not Commercialize Users’ Data – ECB Chief

As several countries and regions continue to make concerted efforts into launching a Central Bank Digital Currency (CBDC), Christine Lagarde, President of the European Central Bank has promised that the Digital Euro – the region’s digital currency will not be commercialized.

Christine made this assurance during a summit on US-European GeoEconomics held in Frankfurt.

Citing a previous survey by the regulator which ranks privacy as a priority by respondents, the ECB chief says the digital euro would protect citizens, guaranteeing that user information will not be exploited for commercial purposes.

Similarly, Jerome Powell of the US Federal Reserve also agrees that privacy protection along with identity verification, interoperability, and mediation are key features of a successful CBDC.

While she recognizes the need for regulators around the world to be on the same page regulatory-wise, Christine opines that a digital euro should be borderless to facilitate cross-border payments.

In a recent publication by the ECB outlining the advantages and disadvantages of the CBDC, the regulator believes the CBDC could help limit the dominance of big fintech firms. It also backed CBDCs as a better choice for cross-border payments over the likes of bitcoin and stablecoins.

Beyond Digital Euro: Central Banks double up on CBDC projects

As several financial monetary watchdogs look to tap into the financial advancement offered by digital currencies, many nations of the world are exploring the potential benefits of a CBDC in their financial economy. This proliferation has led to the launch of research programs by many countries while a few others launch their CBDCs.

The Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC)  have sought submissions from members of the business community on the use cases of the CBDC. The pilot for the CBDC dubbed “eAUD” is expected to run from January to April 2023 with a few selected uses.

Also, Thailand will begin trials for its CBDC by the end of this year as it positions itself for the future of money. Although several research programs into CBDC are being carried out, only a very few have resulted in an actual launch.

In October 2020, the Bahamas became the first country in the world to launch a CBDC. it partnered with PopPay and SunCash to provide its citizens with Sand Dollar.

Also, Nigeria with the launch of its e-Naira became the first country in Africa to launch its CBDC. Other countries are also in advanced stages with their CBDC development.