In a recent survey conducted by the Deutsche Bundesbank, half of the Germans expressed their potential interest in using the digital euro, despite many respondents admitting to being unaware of its existence or unsure about its nature. The survey, which included 2,012 participants and was published on June 4, highlighted that 50% of the respondents could envision themselves using the digital euro, the European Central Bank's experimental central bank digital currency (CBDC), as an additional payment option.
A significant portion of the respondents, a quarter to be exact, stated that they would not use the digital euro under any circumstances, with a similar percentage indicating a likelihood of not using it. Only 1% of the participants mentioned that they were unsure about their position regarding the digital euro.
Despite the interest shown by a considerable number of respondents, three in five individuals revealed that they had no prior knowledge or exposure to information about the digital euro. Among those who were familiar with it, about a quarter admitted to not comprehending its nature, with 16% incorrectly associating it with being a cryptocurrency.
Additionally, a substantial percentage of the respondents, close to 30%, believed that the digital euro aimed to replace physical cash or eliminate it altogether if introduced. However, only 17% of the participants accurately identified the digital euro as a form of central bank-issued digital money within the Eurosystem, intended to complement existing payment methods such as cash.
The survey underlines the lack of awareness surrounding the digital euro, with Bundesbank President Joachim Nagel emphasizing the need for substantial information dissemination.
Main Concerns Regarding the Digital Euro
Privacy emerged as the primary concern among respondents in relation to the digital euro, with over three-quarters of the participants stressing its importance. More than 70% of the respondents emphasized the significance of the CBDC being based on European infrastructure, while over 60% highlighted the importance of the digital euro being government-issued like cash and enabling offline payments.
Nagel highlighted that the Eurosystem central banks prioritize data privacy and assured that the digital euro would offer enhanced privacy protection compared to existing commercial payment solutions.
The European Central Bank promises that the digital euro will support offline transactions, with payment details accessible only to the transacting parties.
The current focus is on the preparation phase of the digital euro, scheduled for completion in October 2025, to finalize regulations and identify potential issuers. Last year, the European Commission introduced a draft regulation to establish a legal framework for the digital euro and safeguard the use of physical cash.
Burkhard Balz, the Bundesbank board member overseeing the digital euro project, indicated that initial payments with the digital euro might be feasible no earlier than 2028 according to existing plans.
