Digital Euro Takes Shape: Privacy by Design, but Not Quite Cash
Europe’s digital currency debate is entering a decisive phase. According to Cointelegraph, the Council of the European Union has published its official position on the digital euro — closely aligning with the vision of the European Central Bank.
The key takeaway: online and offline versions of the digital euro would be launched at the same time.
ECB President Christine Lagarde made it clear that the technical groundwork is largely in place. The next move now rests with EU lawmakers — first the Council, then the European Parliament — to decide whether the European Commission’s proposal becomes law or is reshaped.
Offline ≠ Anonymous Cash
The offline digital euro is designed to behave like cash, with strong privacy guarantees:
Transactions cannot be linked together to build user profiles
Transaction data stays only with the two parties involved
No central tracking by the ECB
Offline payments would occur through authorized devices (such as phones or smart cards), transferring digital euro tokens signed by the central bank during in-person interactions.
The Privacy Trade-Off
However, the system isn’t identical to physical cash. Experts — including the European Data Protection Board — acknowledge a key limitation:
👉 Physical proximity cannot be perfectly enforced in the digital world.
Technologies like NFC relay attacks could theoretically allow remote usage, making “offline-only” guarantees hard to police. Additionally, unlike cash, private keys
