ECB eyes onchain settlements next year as lawmakers weigh digital euro privacy

The European Central Bank (ECB) announced plans to enable blockchain-based settlement in central bank money next year and is preparing for the issuance of a digital euro. Executive board member Piero Cipollone stated that the infrastructure would also support cross-border payments with other central bank digital currencies (CBDCs). However, the final privacy safeguards for the digital euro are contingent upon approval from EU lawmakers, with initial transactions potentially starting in 2027 if legislative approval is secured in 2026. The ECB envisions the digital euro supporting both online and offline use, aiming for offline privacy levels similar to physical cash, where not all transactions require third-party validation. This contrasts with recent privacy concerns raised by EU bodies, such as attempts to mandate private message scanning and existing AML rules banning anonymous crypto accounts.

(Source：Cointelegraph)