The recipient uses the encryption key to make it readable again. … If under the GDPR, encrypted data is regarded as personal data, thus subjecting any businesses that process the data to regulation and potential liability, it will hamper the growth of the digital economy.

Is encrypted data considered personal data?

Answer. Personal data is any information that relates to an identified or identifiable living individual. … Personal data that has been de-identified, encrypted or pseudonymised but can be used to re-identify a person remains personal data and falls within the scope of the GDPR.

Should personal information be encrypted?

Encryption is the best way to protect data during transfer and one way to secure stored personal data. It also reduces the risk of abuse within a company, as access is limited only to authorised people with the right key.