EU Council Greenlights Digital Euro With ‘Offline’ Mode — Is Privacy Finally Secured?

Core Viewpoint - The European Union has established its negotiating position for legislation enabling the European Central Bank to issue a digital euro, including an offline version that operates without internet access [1][2]. Group 1: Digital Euro Development - The digital euro will feature both online and offline payment options, aimed at maintaining the relevance of central bank money in a digital economy while preserving cash-like features [2]. - The European Central Bank has completed its technical groundwork for the digital euro, concluding a two-year preparation phase in October 2025, with future steps dependent on lawmakers [3]. Group 2: Privacy and Security Concerns - The offline digital euro allows direct exchanges between certified devices, with transaction details known only to the payer and payee, offering a level of privacy comparable to cash for low-value payments [4]. - Experts have raised concerns about the technical limitations of ensuring physical proximity in digital systems, indicating that the offline digital euro is highly private but not fully anonymous like physical cash [5][6].