European Central Bank Executive Board member Piero Cipollone said a digital euro would offer the maximum privacy current technology allows, with the Eurosystem unable to identify parties to online or offline payments, answering concerns that a central bank digital currency would let Frankfurt monitor spending. Offline payments would be visible only to payer and payee, while online only the commercial banks distributing the currency could identify users, including for anti-money-laundering checks. The European Parliament set its negotiating position in July, with EU institutions targeting a legislative deal by end-2026, a 12-month pilot from the second half of 2027 involving 36 providers including Deutsche Bank, UniCredit and Revolut, and first issuance aimed at 2029. Cipollone has also warned that rising stablecoin use could drain European bank deposits. In contrast, US law bars the Federal Reserve from issuing a CBDC until the end of 2030 without congressional authorization, while leaving regulated dollar stablecoins untouched.