EU Council backs online and offline versions of digital euro

The Council of the European Union has endorsed the launch of the European Central Bank’s digital euro in both an online and privacy-focused offline version. A document released on Friday confirms the council’s alignment with the ECB on launching both variants simultaneously.

The offline version is designed like cash, preventing observers from linking multiple transactions to the same user, with transaction data never leaving the participating devices. Authorized devices can transfer central-bank-signed tokens in in-person transactions. Experts note that enforcing cash-like physical proximity is challenging, and countermeasures against relay attacks are limited.

Private keys for the offline digital euro will be stored in secure elements of certified devices, such as mobile phones or smart cards, to safeguard user privacy.