The European Central Bank (ECB) is once again trying to dispel skepticism surrounding its digital currency. Piero Cipollone, a member of the regulator's executive board, stated that the digital euro will provide a level of privacy unattainable with traditional bank transfers. The key argument is that the Eurosystem will technically be unable to match a specific user with their transactions.
Offline mode as the main trump card
According to Cipollone, offline payments in the CBDC will take place directly between participants, without intermediaries. The details of such operations will remain known only to the payer and the recipient — a fundamental difference from the current banking model, where data passes through several layers of infrastructure. In online scenarios, identification will be available only to participating banks, and solely within the framework of complying with anti-money laundering requirements.
Cash under protection?
Cipollone also hastened to refute fears that the digital euro would displace physical money. He insists that the new instrument is intended to complement cash, especially in areas where cash is inefficient — for example, in e-commerce. As evidence, he cites a recent ECB survey on the design of new euro banknotes, which, in his view, demonstrates sustained demand for physical currency.
However, critics of the project remain adamant. The Austrian group Epicenter.works and a number of other human rights organizations point out that privacy guarantees are built on institutional promises rather than technical mechanisms. This is a vulnerable spot: with a change in political course or pressure from law enforcement agencies, the declared confidentiality could quickly be revised.
Timing and prospects
It is worth recalling that the European Parliament already approved its position on the Single Currency Package in July, and negotiations are now underway with the EU Council and the European Commission. The ECB expects the regulation to be adopted by the end of 2026, with technical readiness for the first CBDC issuance slated for 2029. At the same time, the final decision on launch will be made only after the legislative framework is approved. A closed pilot already involves 36 banks and payment companies selected by the regulator.
My analysis: Cipollone's statements are a clear attempt to remove the project's main blocker — the privacy issue. But until protection mechanisms are enshrined at the code level rather than the level of promises, the trust of the crypto community and human rights advocates will remain in question. For the market, this is a signal: the ECB is seriously committed to the launch, and the industry should prepare for the emergence of a state competitor in the payment sector in the coming years.