Digital Euro May Get Easier AML Rules Than Bitcoin, EU Commissioner Says

The EU’s imaginable integer euro volition look wealth laundering checks – but not needfully ones arsenic strict arsenic those presently planned for regular cryptocurrencies similar bitcoin (BTC), the European Commission’s Mairead McGuinness told CoinDesk Tuesday.

In an exclusive interview, McGuinness, the Commission’s astir elder fiscal services official, promised a relation for backstage intermediaries similar banks should a European cardinal slope integer currency (CBDC) beryllium implemented, and said determination would beryllium caller laws up of immoderate determination to issue.

The European Central Bank (ECB) has said it is exploring a integer signifier of state-backed currency to complement banknotes and coins arsenic people’s lives and spending habits spell progressively online. The slope is presently moving done a bid of argumentation questions earlier deciding whether to property ahead.

In a recent, arguable vote, lawmakers astatine the European Parliament favored tough anti-money laundering (AML) rules for bitcoin payments, requiring customers to beryllium identified for adjacent the smallest transactions. But privateness concerns could mean a antithetic authorities applies to the EU’s ain integer currency, McGuinness said.

“A integer euro should comply with AML requirements but this is antithetic to the existent treatment connected cryptoassets,” she said successful a written interview. “We volition beryllium assessing whether a higher level of privateness should beryllium made available, successful particular, for low-value transactions, depending connected the hazard characteristics of the integer euro.”

While the ECB would contented the integer euro, outgo work providers – typically the commercialized banks that contented recognition cards – volition person a “key role” successful uncovering and identifying customers, distributing the currency and offering other services connected top, she said.

“Intermediaries would person to guarantee the onboarding of users and execute AML checks,” she said. “The integer euro is expected to beryllium factored successful to antithetic outgo solutions that outgo services providers offer.”

A presumption fixed by ECB officials to concern ministers yesterday suggests successful signifier determination could beryllium multiple antithetic kinds of wallets disposable to clasp a integer euro with less checks associated with lower-risk payments. Smaller payments could perchance beryllium afloat offline and private, the presumption said, analogous to however currency is utilized today.

But the ECB can’t marque immoderate ceremonial determination to contented until caller laws are successful place, McGuinness said.

“The Commission plans to follow a connection for a regularisation successful Q1 2023,” she said.

A public consultation to hole the crushed for that instrumentality was published by McGuinness earlier Tuesday.