Privacy First urgently calls for democratic debate regarding the digital euro

Privacy First, an independent foundation from the Netherlands that aims to preserve and promote the right to privacy, is worried that we’re “sleepwalking” into the digital euro.

The interest group believes that the digital euro comes with a flawed system that could have “major consequences” for people’s privacy and the legal status of citizens in general.

“As more and more is known about the design of the digital euro, these concerns remain undiminished. The introduction of the digital euro is expected to have profound implications for society and citizens’ rights. For this reason, Privacy First calls for a much more robust debate on whether the digital euro should happen and how citizens' financial privacy will not further deteriorate,” Vincent Böhre-Baron, Director at Privacy First, says in a blog post.

When the digital euro is introduced, a concentration of power will reside at the European Central Bank (ECB), an institution that lacks transparency and has no democratic accountability, Privacy First claims.

Additionally, the ECB decides on the design of the digital euro system, including the creation of a database in which all payments will be recorded. “This database is within reach of intelligence services and police forces and will be a prime target for cyberattacks,” Böhre-Baron believes.

He also assumes that the digital euro will become mandatory one day, leaving people with “no choice” when they want to make or receive payments. On top of that, if the usage of the digital euro increases, cash will most likely be withdrawn from circulation.

“If the ECB itself starts issuing digital euros, this will lead to an even greater concentration of power at the ECB than is already the case. What the consequences of this will be and what impact it could have on citizens is an underexplored issue,” Böhre-Baron argues.

According to Privacy First, the question remains whether there’s a need for the digital euro and what impact the introduction might have on citizens’ privacy. Therefore, the interest group calls on politicians to prevent the roll-out of the digital euro without serious democratic debate and legitimization.

“Introduction of the digital euro cannot depend on a single European vote, but requires a much broader debate,” Böhre-Baron concludes.