Digital Euro Gains Popularity in Germany: Survey Reveals
A recent survey conducted on June 4 has shown that Germans are increasingly open to the idea of a digital euro. However, the study also highlights the lack of knowledge among the general public regarding this proposed alternative payment method, indicating the need for greater education and awareness.
According to the representative survey conducted by forsa, a market research and opinion polling company, on behalf of the Deutsche Bundesbank, 50% of respondents are willing to consider using the digital euro as an additional payment option. Notably, even those who were previously unfamiliar with the concept expressed openness to this new form of payment. However, the survey also found that only 41% of respondents had encountered information about the digital euro, while the majority (59%) remained unaware.
Privacy concerns emerged as a major issue raised by the respondents, mirroring the challenges faced by China’s digital yuan (e-CNY), where Chinese workers quickly convert central bank digital currency (CBDC) into cash upon receiving it. Over three-quarters of the survey participants highlighted privacy protection as a top priority for the digital euro. Additionally, 59% emphasized the importance of an offline version of the currency that would offer privacy protection similar to cash.
However, privacy protection is currently a major focus in the preparatory phase for the European Union Central Bank Digital Currency (CBDC), which is scheduled until October 2025, when the governing council will decide whether to proceed with further preparations for the digital euro project.
Deutsche Bundesbank President Joachim Nagel has stated that the digital euro is expected to launch by 2028 or 2029, ensuring optimal privacy protection for future users. He reassured the public by stating that Eurosystem central banks have no interest in users’ data and that the digital euro would provide better privacy protection than current commercial payment solutions.
Furthermore, a significant number of respondents (72%) believe that it is crucial for the digital euro to be based on a European infrastructure, ensuring independence from global political events or decisions.
The survey also revealed that some respondents had misconceptions about the use case of the digital euro. 15% believed that it would replace cash, while 12% thought that cash would be phased out with the introduction of the digital euro. However, Burkhard Balz, a member of the central bank’s Executive Board, clarified that cash is a fundamental product of the bank and the Eurosystem central banks, and there are no plans to eliminate it.
It is worth noting that the European Central Bank (ECB) initially introduced the digital euro in July 2021 with the aim of developing a fast and secure electronic payment instrument that would complement the existing forms of the euro, including physical cash and bank accounts. After two years of extensive research into the design and distribution models, the ECB entered the next phase on October 18, 2023, to prepare for the issuance of the digital euro.
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