The European Central Bank (ECB) proposed not to check transfers of small amounts in the digital currency of the Central Bank – against the backdrop of the EU’s desire to ban the anonymity of crypto transactions.
Fabio Panetta, head of the digital euro development department, member of the ECB executive board, said that owners of the digital euro will be able to bypass the anti-money laundering law (AML).
“More privacy could be considered for lower cost online and offline payments,” Panetta told lawmakers in the Committee on Economic and Monetary Affairs of the European Parliament.
Panetta added that these payments may be subject to “simplified checks in order to speed up processing transactions,” referring to EU rules on money laundering and terrorist financing. The executive board member referred to a more detailed study based on focused discussions with EU citizen groups:
privacy and other important public policy objectives.”
The proposal made by a member of the ECB’s executive board runs counter to European lawmakers’ plan to ban privacy even for transactions with a small amount of cryptocurrencies.
Traditionally, financial transactions are subject to verification called “know your customer” (KYC). Banks must verify the identity of the client for money laundering and terrorist financing.
The EU has strict rules for protecting personal data. Privacy protection is the number one feature that Europeans want to see in the digital euro. ECB experts have put forward ideas such as “anonymity vouchers” that would allow people to hide a limited amount of transactions from the authorities.
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