A digital version of the euro currency will be free and accessible to all, but the European Central Bank does not want to store any personal data about its users, ECB board member Fabio Panetta said.

The ECB is working on a digital version of its currency and is in the process of defining a broader scheme, and hopes to allay fears that a digital currency could disrupt the financial system and provide the central bank with too much data on citizens.

Digital currency is a direct claim on the central bank's balance sheet, just like cash, so it is considered safer than a deposit held in a commercial bank.

Banks were concerned that digital currency would make their own services redundant, so customers would abandon them and convert their cash into central bank money, given the added security.

If released, the ECB could develop its own standalone payments app or allow commercial banks to integrate the digital euro into their own platforms.

Hoping to address a key privacy concern, Panetta said the ECB seeks not to have access to personal data.

But that can be problematic given concerns about money laundering, terrorism financing and tax evasion, so lawmakers are looking at options to monitor usage.

The ECB is still only investigating the creation of the digital euro, and the actual release is still a long way off.