Fabio Panetta, an Executive Board Member of the European Central Bank (ECB), has proposed that users of the digital euro should only be allowed to spend €50 per transaction and have a maximum monthly spending limit of just €1,000 if they want to avoid having their transaction data recorded by the ECB.
The digital euro is the European Union’s (EU’s) proposed central bank digital currency (CBDC) and officials involved with the project have already confirmed that it will have less anonymity than cash.
But during an appearance at a “Towards a legislative framework for a digital euro” event (which was jointly organized by the European Commission (EC), the executive branch of the EU, and the ECB), Panetta and other officials discussed further restrictions that they hope to impose when the digital euro rolls out.
Panetta proposed that the ECB should be able to see data on payments between digital euro users but that it wouldn’t hold personal data about those users. He indicated that the only way for digital euro users to possibly avoid having their payment data recorded would be to stick to “very small value payments.”
“If we allow users to do transactions up to say €50 with a maximum…volume of transactions in a given timeframe that is monthly not more than €1,000…transaction not more than 50, then one might discuss that this could not be recorded but this is a discussion which would take place,” Panetta said.