European Central Bank (ECB) President Christine Lagarde recently commented on the bloc’s efforts on a financial institution’s central bank digital currency (CBDC), as well as the alleged anonymity of the upcoming digital asset.
Recently, Lagarde fez defenses related to the ECB’s CBDC project, highlighting that the currency “will not be completely anonymous” when compared to a bank note.
“We are working to protect privacy, but as digital money leaves traces on the blockchain, it will not be completely anonymous like a banknote,” said the ECB president.
The statement follows concerns raised by some Members of the European Parliament (MEPs) related to the CBDC project. At the heart of these concerns is the impact on users’ data privacy.
It is worth remembering that, on September 14, Bitcoin registered a significant increase following a relevant announcement from the European Central Bank (ECB). The institution signaled that its recent increase in its main interest rate, the tenth in a row, would possibly be the last in that sequence.
In the official statement released by the ECB, it was mentioned that current interest rates have the potential to favor inflation, bringing it back to the stipulated objective. This was supported by the increase of three ECB policy rates by 0.25%.
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