A new study by the European Central Bank (ECB) shows that most European consumers are not interested in using a digital euro. The survey, which included about 19,000 people from 11 euro-area countries, found that many see little benefit in adopting a central bank digital currency (CBDC).
Survey Shows Minimal Consumer Interest in Digital Euro
When asked how they would divide €10,000 (about $10,800) among different assets, most participants allocated only a small amount to the digital euro. Instead, they preferred to keep their money in cash, current accounts, or savings. This suggests that a digital euro would have little impact on existing payment methods.
The ECB study highlights a major challenge: convincing people that a digital euro is useful. Europeans already have many ways to pay both online and offline, making it difficult to show why they should adopt a new system. The study states:
Convincing some users of the value added of a CBDC might pose a challenge for policymakers, and more research will certainly be needed in this area.
Video Education Could Boost Adoption
The research suggests that introducing a digital euro would not disrupt financial stability. However, getting people to use it remains a big hurdle. The study points out that many Europeans prefer familiar payment methods and do not see a need for a new one.
To address this reluctance, the ECB suggests targeted communication. One key finding of the study is that video-based education can help change people’s views on the digital euro. When participants watched a short video explaining the key features of the digital euro, they became more likely to consider using it. The study notes:
Consumers who are shown a short video providing concise and clear communication about the key features of the digital euro are substantially more likely to update their beliefs about this new form of payment.
US Lawmakers Push Back Against CBDCs
The ECB study was released as the debate over digital currencies grows worldwide. In the United States, lawmakers are pushing back against CBDCs. During a House Financial Services Committee hearing on March 11, Representative Tom Emmer said Congress should pass laws that support stablecoins while blocking CBDCs.
Emmer criticized CBDCs, calling them “inherently un-American.” He argued that unelected officials should not have the power to issue them. He also reintroduced the CBDC Anti-Surveillance State Act, which aims to prevent any future US administration from launching a CBDC.
Despite consumer reluctance, some European financial leaders support the idea of a digital euro. Deutsche Börse CEO Stephan Leithner recently called for a permanent digital euro. Above all, he believes that it could help strengthen Europe’s financial independence.
