The European Data Protection Board (EDPC) and the European Data Protection Supervisor (EDPS) have published a set of joint recommendations for the digital euro aimed at ensuring "the highest data protection and privacy standards."
The European Commission presented a legislative proposal in June that would establish the legal basis for the possible issuance of a CBDC. According to it, the new form of money will function as a digital wallet that will allow users to conduct offline transactions.
The ECDC and the EDPS gave their support to the bill, highlighting the high level of data protection, but added several improvements.
The regulators have proposed to ensure that only necessary personal data is processed and that it is not "excessively centralized" by the ECB or national central banks.
The digital euro regulations impose restrictions on holding a certain amount of the asset. The verification of compliance will be carried out by processing user IDs and their limits, experts have explained.