Experts say the digital euro’s outcome hinges on a political compromise with parties fighting for the limits of privacy and online functionality.
Trade-offs between local institutions are expected to shape the digital euro’s final form, as debates continue over holding limits and privacy features.
The EU Council recently announced that it is backing the European Central Bank’s digital euro design, which includes both online and offline functions.
According to Apostolos Thomadakis, head of the financial markets and institutions unit at the European Policy Studies think tank, “cash-like privacy” with anti-money laundering rules is among the digital euro’s “hardest political tradeoffs.”
