The European Central Bank (ECB) faces pushback from EU lawmakers over privacy concerns and risks to commercial banks in its renewed push for a digital euro. Legislation for the central bank digital currency (CBDC) has been delayed since 2023 due to political concerns and the 2024 elections.

ECB board member Piero Cipollone emphasized the need for a digital euro as a fallback in times of crisis, citing the reliance on non-EU providers for core digital payment systems. He highlighted the importance of digital payments in daily life, positioning the digital euro as essential for resilience and inclusion.

Lawmakers raised worries about the privacy implications of a digital euro and the potential for EU citizens to favor banking with the ECB over commercial banks. Cipollone assured that the central bank would not have access to payer and payee information, preserving user privacy comparable to physical cash.

The ECB eyes a 2026 law for the digital euro, with potential rollout by 2029 pending approval from three EU institutions. The process could take months of talks among the parliament, European Commission, and European Council, with infrastructure development and testing expected to take up to three years, delaying a potential launch.

Read more at Cointelegraph: ECB Renews Digital Euro Pitch to Skeptical Lawmakers