European Union: Issued EDPB and EDPS joint opinion on the Proposal for a Regulation on the establishment of the digital euro

On 17 October 2023, the European Data Protection Board (EDPB) and the European Data Protection Supervisor (EDPS) adopted a joint opinion on the Proposal for a Regulation on the establishment of the digital euro. The EDPB and the EDPS recognise the consideration and incorporation of data protection principles in the proposed regulation and make recommendations to further ensure compliance with those principles. The EDPB and EDPS highlight the importance of not processing unnecessary personal data of users and, where feasible, through the implementation of technical measures, decentralising the storage of personal data. Further, the EDPB and EDPS recommend a clear definition of the data protection responsibilities of the involved parties, in particular of the European Central Bank (ECB), national central banks, and the payment service providers (PCPs). The EDPB and EDPS also propose the introduction of a “privacy threshold” in relation to online transactions, below which the payments are not traced regarding anti-money laundering and combatting the financing of terrorism. The EDPB and EDPS will continuously monitor the developments of the legal framework and provide recommendations.