Half of Germans Open to Digital Euro, Improvement in Awareness Needed: Bundesbank Survey
Summary:
A recent Deutsche Bundesbank survey reveals that 50% of German citizens are open to the idea of using the digital euro despite many admitting they are unfamiliar with it. The survey also highlights the need for enhanced privacy, European infrastructure usage and offline capability to be central to this new payment solution. Simultaneously, it underscores the need for more widespread education and understanding about the digital euro before introducing it. The European Central Bank is aiming to finalize preparations by October 2025 with the first transactions likely to take place in 2028.
In a recent study, 50% of German citizens expressed their potential willingness to adopt the digital euro, despite a significant proportion having limited knowledge or understanding of it. The study, conducted by Deutsche Bundesbank and involving 2,012 participants, found that if the digital euro became an additional payment option, half the respondents would likely utilize it. In contrast, around 25% categorically rejected the idea, with an equal proportion having reservations, and 1% abstained due to lack of information.
Regarding familiarity with the digital euro, three-fifths of respondents admitted they were unaware of it. Among those who had some knowledge about it, one-fourth weren't confident about what precisely it meant. Interestingly, 16% mistook it to be a cryptocurrency, while nearly 30% believed it was designed to eliminate cash or that introducing it would result in cash being phased out. Only 17% captured its essence as a new form of digital tender to supplement existing payment methods, like cash.
The results prompted a response from Bundesbank President Joachim Nagel, expressing the need for enhanced information dissemination. When probing participants for their primary concerns, maintaining greater privacy compared to current digital payment solutions stood out, with over 75% of them ranking it as crucial. Over 70% held it important for the central bank digital currency (CBDC) to rely on local European infrastructure. Further, 60% assigned significance to its government-issued status like cash and offline usability.
Assuring users, Nagel emphasized that “Eurosystem central banks have no intention of mining users’ data,” and a digital euro would enhance privacy compared to current commercial payment solutions. As per the European Central Bank (ECB), the digital euro will have offline usability, with transaction details accessible only to the payer and payee.
The ECB plans to conclude the preparatory phase by October 2025, with the focus on rule finalization and potential issuer identification, while a legal framework proposal and safeguarding cash usage came up last June in the European Commission's draft regulation.
According to Burkhard Balz, Bundesbank board member handling the digital euro project, the first possible digital euro transactions may occur not earlier than 2028.
Published At
6/5/2024 4:58:26 AM
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