Study Reveals European Disinterest in Digital Euro

Citizens of the eurozone show little interest in a digital euro and perceive limited value in central bank digital currencies (CBDCs). This conclusion was reached by analysts at the ECB, who examined responses from 19,000 participants across 11 EU countries.

The average household allocated only a small portion of a hypothetical €10,000 distribution to its digital version, leaving the share of traditional assets like cash, current, and savings accounts largely unchanged.

Europeans prefer existing payment methods and see no real benefit in a new type of payment system amidst a plethora of offline and online alternatives.

The survey highlighted the importance of targeted communication to enhance asset adoption, which will require further research by the ECB. The most effective channel could be educational videos with concise and clear explanations of the digital euro’s key features.

The report emerged following criticism of CBDCs in the United States. On March 11, Representative Tom Emmer voiced support for legislation aimed at regulating stablecoins and condemned the idea of creating a digital dollar.

A few days earlier, he introduced a bill prohibiting future administrations from issuing CBDCs.

The digital euro is slated for launch by October 2025, contingent upon the adoption of the necessary regulatory framework, stated ECB President Christine Lagarde. The project’s implementation requires the consent of the European Parliament, the EU Council, and the European Commission.

Lagarde emphasized that the digital euro is “necessary at both wholesale and retail levels.”

Back in February, the OMFIF found a decline in central banks’ interest in CBDCs. According to researchers, the share of central banks reporting less inclination to issue a digital national currency rose from zero in 2022 to 15%.

In March, four out of eight groups in the European Parliament expressed doubts about launching a CBDC amid issues with the Target 2 (T2) system.