European Union: Published EDPB Statement on the design choices for a digital euro from the privacy and data protection perspective

On 10 October 2022, the European Data Protection Board (EDPB) published a document titled “Statement on the design choices for a digital euro from the privacy and data protection perspective (04/2022)”. The Statement emphasises the importance of applying high standards of privacy and data protection in the design of the future digital euro. The EDPB recommends that the technical design of the digital euro should be based on a documented impact assessment of all possible risks taking into account innovative and privacy-enhancing technologies. The EDPB notes the importance of avoiding a system that requires validation of all transactions in digital euros since it might contravene the data protection principles of necessity and proportionality of the EU. Further, the EDPB recommends the implementation of a “privacy threshold”, establishing a transaction threshold under which no tracing may occur in order to provide privacy to users in their daily transactions. Finally, the EDPB recommends developing a specific legal framework for the digital euro that address data protection and enhances public debate on the protection of personal data in digital payments.