Central bank digital currencies (CBDCs) are facing challenges related to privacy, programmability, and politics. Privacy is a major concern for CBDCs designed for retail payments in developed economies, such as the proposed digital euro.

The European Central Bank is expected to complete its investigation into a digital euro in October, with privacy being the most important feature for both citizens and professionals in public consultations.

The digital euro will be distributed through intermediaries, and measures will be taken to ensure that user identities cannot be accessed.

Safeguards are crucial to prevent price discrimination based on spending patterns, and EU Member States and elected Members of the European Parliament must support and explain the legislation regarding privacy and the digital euro to their electorate.