June 9, 2024
Technology

Half of Germans Open to Digital Euro, Survey Reveals

A recent survey reveals that half of Germans can imagine using the digital euro, despite many being unfamiliar with it. Conducted by the Deutsche Bundesbank with 2,012 participants, the survey results released on June 4 highlight significant openness to the digital euro, although there is considerable misunderstanding about what it entails.

Mixed Reactions to Digital Euro

According to the survey, 50% of respondents stated they could either “definitely” or “probably” see themselves using the digital euro as an additional payment option. Conversely, a quarter of Germans said they would “definitely not” use it, and a similar number indicated they would “probably not” consider it. Notably, 1% of participants were undecided. Interestingly, three out of five respondents admitted they had never encountered any information about the digital euro.

Among those who had heard of it, around 25% admitted to not knowing what it was. Misconceptions were prevalent, with 16% thinking it was a cryptocurrency and nearly 30% believing it was intended to replace cash or that cash would be abolished upon its introduction. Only 17% correctly identified the digital euro as a central bank digital currency (CBDC) from the Eurosystem that would coexist with existing payment methods like cash. Deutsche Bundesbank President Joachim Nagel emphasized that these findings indicate a significant need for public education on the digital euro.

Privacy Concerns Dominate Public Opinion

Privacy emerged as the top concern among Germans regarding the digital euro. Over three-quarters of respondents rated enhanced privacy as a “very important” or “important” feature. More than 70% emphasized the importance of the CBDC being based on European infrastructure, while over 60% highlighted the significance of it being government-issued like cash and offering offline payment capabilities.

Nagel reassured the public, stating, “Eurosystem central banks have no interest in users’ data.” He asserted that the digital euro would offer superior privacy protections compared to current commercial payment solutions. The European Central Bank (ECB) supports this claim, stating that the digital euro could be used offline, with transaction details known only to the payer and the payee.

Path to Implementation

The digital euro is currently in a preparation phase, expected to be completed by October 2025. This phase focuses on finalizing the regulatory framework and identifying potential issuers. In June of the previous year, the European Commission proposed a draft regulation to establish a legal framework for the digital euro and to ensure the continued use of cash.

Burkhard Balz, the Bundesbank board member overseeing the digital euro project, stated that, under current plans, Germans could make their first payments with the digital euro by 2028 at the earliest.

Information Crucial for Adoption

The survey results indicate that while there is a notable interest among Germans in using the digital euro, significant educational efforts are necessary to bridge the knowledge gap. As privacy concerns remain paramount, addressing these issues transparently and effectively will be critical for the successful adoption of the digital euro in the future.

Image by rawpixel.com on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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