A study revealed that European consumers show minimal interest in the digital euro, causing concerns for the European Central Bank (ECB).
Challenges in implementing the digital euro
According to an ECB working paper, European consumers show little interest in the digital euro. A survey of around 19,000 respondents from 11 euro-area countries highlighted significant communication challenges discouraging households from adopting the digital euro.
Consumer preferences and response
When hypothetically allocating 10,000 euros, Europeans allocated only a small portion to the digital euro. Many express a preference for existing payment methods. The study stresses the necessity of targeted communication to combat persistent consumer reluctance.
Political debates on CBDCs
The study was released amidst increased opposition from US lawmakers to CBDCs. Representative Tom Emmer described CBDC technology as "inherently un-American" and introduced legislation to prevent its future introduction in the US.
While the digital euro could be introduced with minimal disruption to financial stability, its adoption will require significant efforts. Accurate communication and educational initiatives are necessary to advance the digital euro among consumers.
