Only half the population could envisage using the digital euro
The success of the digital euro after its potential introduction will stand or fall with public acceptance. A survey conducted by the market research and opinion polling company Forsa on behalf of the Deutsche Bundesbank shows that there is still a lot of room for improvement. Only around half those surveyed can contemplate paying with digital euros. Only 15% said that they would definitely do so.
The German population's knowledge of the digital euro is still poor – in fact 59% have never heard of it. Accordingly, the respondents in the survey were given a brief explanation of what the digital euro is before they indicated whether they could imagine using it or not.
Lack of knowledge
There is also a lot of misinformation in circulation among those who have already heard of digital central bank money. Around one in four believe that the aim of its introduction is to abolish cash. The European Central Bank (ECB) and the national central banks repeatedly emphasise that this is not the case. The digital euro is intended to be an additional payment option, alongside cash and the digital payment options offered by private companies. 8% also believe that the ECB wants to monitor citizens using the new currency, and 16% that it is a cryptocurrency similar to Bitcoin.
„The survey shows us that there is still a great requirement for information, and that we are on the right track with our priorities such as the protection of privacy in the preparation for the new European means of payment,“ said Bundesbank President Joachim Nagel.
The survey shows what the German population attaches particular importance to when implementing the digital euro – and protection of privacy is the highest priority. 72% stated that it is important that this is stronger than with existing payment methods. If the ECB is able to implement this and convince people, it could be a way of increasing public acceptance.
The Bundesbank board member responsible for the digital euro, Burkhard Balz, said in an interview with Börsen-Zeitung that the Bundesbank has repeatedly emphasised the importance of data protection to the ECB and the national central banks. Apparently with success.
„Having the highest level of privacy is a crucial component,“ said Daniel McLean, Deputy Head of the ECB's Digital euro Product Proposition Division, in a recent press briefing. The digital euro will be designed in such a way that the ECB will not be able to link payments to individual persons. This is only possible for banks and payment service providers, so that they can prevent money laundering and terrorist financing.
Digital inclusion
McLean also considers it important that the digital euro is inclusive. Although almost all eurozone citizens have a bank account, around 30% have difficulties with online banking and using apps. The ECB would like to reach this group of people with the digital euro. It therefore hopes that, in the event of its possible introduction, lawmakers provide for analogue contact points that citizens can turn to if they need support. These could be post offices, for example. They could explain how to use the app for the digital euro. However, it remains to be seen whether such a scenario, which would involve a lot of effort, will materialise.
The same applies to whether the digital euro will be introduced at all –though this is considered likely. Before the ECB proceeds, EU legislators would have to give the green light. In view of the European elections at the weekend, it is unlikely that this will happen this year. The Bundesbank currently considers introduction in 2028 at the earliest to be realistic.
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