Addressing privacy concerns, Nagel noted that financial institutions and other payment service providers processing digital euro payments \u201cwould not be allowed to use personal and transaction-related data for commercial purposes.\u201d He noted though that this restriction would only be lifted if users explicitly granted consent. \u201cThey [banks] would, however, have limited access to these data to the extent necessary in order for them to comply with anti-money laundering and counter-terrorism financing regulations.<\/p>\n
Offline payments would therefore be limited to low-value transactions.\u201d<\/p>\n
In addition to privacy concerns, Nagel also acknowledged that banks \u201chave their share of concerns when it comes to the digital euro,\u201d saying the lenders are afraid that the digital euro \u201cmight become an attractive substitute to bank deposits.\u201d \u201cBanks could lose an important source of funding. This could cause structural disintermediation and reduce banks\u2019 ability to provide credit.\u201d Joachim Nagel<\/p>\n
He assured that the Eurosystem is aware of these risks and will implement necessary precautions, including setting low maximum amounts for CBDC holdings to ensure that \u201cbanks will be able to cope with an additional demand for liquidity.\u201d<\/p>\n
Although Nagel admitted that some people \u201cdoubt whether we need a digital euro at all,\u201d he emphasized his confidence in the economy digitization, saying that both consumers and retailers \u201cwould appreciate the benefits of having a single payment instrument that ticks all the boxes.\u201d<\/p>\n
Meanwhile, the United States is taking a cautious approach regarding the launch of a CBDC, with Federal Reserve Chair Jerome Powell indicating that the country is far from making a recommendation or implementing a CBDC.<\/p>\n","protected":false},"excerpt":{"rendered":"
Addressing privacy concerns, Nagel noted that financial institutions and other payment service providers processing digital euro payments \u201cwould not be allowed to use personal and […]<\/p>\n","protected":false},"author":1,"featured_media":1224,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[391],"tags":[],"class_list":["post-1225","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cbdc-central-bank-digital-currency"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/cryptogoldex.com\/index.php\/wp-json\/wp\/v2\/posts\/1225","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptogoldex.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptogoldex.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptogoldex.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptogoldex.com\/index.php\/wp-json\/wp\/v2\/comments?post=1225"}],"version-history":[{"count":0,"href":"https:\/\/cryptogoldex.com\/index.php\/wp-json\/wp\/v2\/posts\/1225\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptogoldex.com\/index.php\/wp-json\/wp\/v2\/media\/1224"}],"wp:attachment":[{"href":"https:\/\/cryptogoldex.com\/index.php\/wp-json\/wp\/v2\/media?parent=1225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptogoldex.com\/index.php\/wp-json\/wp\/v2\/categories?post=1225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptogoldex.com\/index.php\/wp-json\/wp\/v2\/tags?post=1225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}