A new central bank digital currency (CBDC) in Europe would be designed with privacy in mind, although it would never be as private as cash is, according to a European Central Bank (ECB) official.

Speaking before the European Parliament’s Committee on Economic and Monetary Affairs on Monday, ECB board member Fabio Panetta said a euro CBDC would “complement” cash, and mimic the best features of cash payments.

Still, such a CBDC would most likely not offer the same degree of privacy as cash does, he admitted.

“We will try to replicate the features of cash that people appreciate, that citizens prefer. That is, maximum level of privacy,” Panetta said.

He added that this means a CBDC in the EU will be designed with the “maximum level of privacy” in mind, including a possibility for some small transactions to be made anonymously.

(by Fredrik Vold)