The European Central Bank defended the privacy design of the digital euro, saying the Eurosystem would not be able to identify users sending or receiving payments or directly link individuals to transactions. Piero Cipollone, an ECB Executive Board member, said banks involved in transactions could identify users, including for anti-money laundering purposes, while offline payments would make transaction information available only to the sender and recipient. The ECB has selected 36 payment providers to test the digital euro ahead of a planned 2027 pilot. It also presents the project as a way to strengthen Europe’s payment sovereignty, noting that two-thirds of eurozone card transactions are processed by non-European companies. The digital euro could be issued as early as 2029 if the necessary legislation is passed and technical and operational work is completed. The European Parliament’s Committee on Economic and Monetary Affairs finalized its position in June and approved the start of negotiations with the Council in July. The project remains controversial, with lawmakers, privacy advocates and crypto community members warning that central bank digital currencies could expand financial surveillance. In the United States, President Donald Trump prohibited federal agencies from developing or promoting a CBDC in January 2025, while House lawmakers have advanced the Anti-CBDC Surveillance State Act.