“Europeans Show Little Interest in Digital Euro, According to ECB Report”

European consumers show little interest in adopting a Central Bank Digital Currency (CBDC). This concerns the European Central Bank (ECB) as it prepares for a possible rollout of the digital euro.

In a study by the ECB titled “Consumer attitudes towards a central bank digital currency”, about 19,000 respondents in 11 euro countries were surveyed. This revealed significant communication challenges that discourage European households from embracing the digital euro.

Findings of the study

Participants were asked to hypothetically distribute 10,000 euros across various assets, with only a small portion allocating the digital euro. This had little impact on traditional liquid assets such as cash, current accounts, or savings accounts.

According to the ECB study, Europeans prefer existing payment methods and see no clear added value in a new payment system due to the many offline and online alternatives:

“This finding also suggests that convincing some users of the added value of a CBDC may pose a challenge for policymakers, and more research will certainly be needed in this area.”

The study suggests that a digital euro can be introduced with minimal disruption to financial stability, but significant obstacles are expected regarding existing consumer habits. The report also emphasizes that the importance of targeted communication can address the ongoing reluctance of consumers towards the digital euro.

Furthermore, it appears that European consumers are receptive to video-based education and training. It is therefore concluded that informing the public through videos about the key features of the digital euro can contribute to broad adoption:

“We find evidence that consumers who are shown a short video with concise and clear communication about the key features of the digital euro are significantly more likely to revise their opinion about this new form of payment. This increases their immediate willingness to adopt it compared to an untreated control group.”

ECB accelerates development while US hits the brakes

The ECB’s research comes as US lawmakers step up their opposition to CBDCs. During a hearing of the House Financial Services Committee on March 11, Representative Tom Emmer said that Congress should prioritize pro-stablecoin legislation alongside anti-CBDC legislation:

“CBDC technology is inherently un-American. Unelected officials should not be authorized to issue this.”

Emmer reintroduced the CBDC Anti-Surveillance State Act, which would prevent future US governments from launching CBDCs. Meanwhile, the CEO of Deutsche Börse, Stephan Leithner, recently called for the establishment of a permanent digital euro to strengthen the region’s financial autonomy.