ECB board member: CBDC Euro will respect privacy as opposed to private 'unstable coins'

European Central Bank (ECB) board member Fabio Panetta believes a digital euro protects privacy better than a stablecoin issued by a major tech company. “If the central bank gets involved in digital payments, privacy will be better protected […] because we are not like private companies,” he told the Financial Times in an interview published today. "We have no commercial interest in storing, managing or monetizing users' data." Last month, the Facebook-backed Diem Association said it had a pilot version of its stablecoin – a private digital currency pegged to a 1:1 fiat currency. According to the FT, Panetta described Diem, formerly known as Libra, as an "unstable currency". If the ECB is the digital euro, it will be a central bank digital currency (CBDC). It's still a tentative plan; It could take at least four years, according to ECB President Christine Lagarde. Panetta said it would take two years to design the coin alone. The interview comes two weeks after the ECB advised governments to beware of CBDCs. In a June 2 report, the ECB said that governments avoiding CBDCs risk exposing their financial systems and monetary autonomy to "foreign tech giants who may introduce artificial currencies in the future." Diem was not mentioned in the report. Panetta did not explain how a digital euro would protect privacy, except that the ECB would not be as hungry for consumer data as a private company. “Payment is made, but no one in the payment chain has access to all the information,” he said. Unlike cryptocurrencies, CBDCs are generally decentralized. In April, the ECB surveyed the public about CBDC plans and found that half of those surveyed believed that blockchain could handle counterfeits and solve technical problems. Business, DiemRead more

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