A recent study by the European Central Bank (ECB) indicates that European consumers have little enthusiasm for adopting a central bank digital currency (CBDC), posing a challenge for the ECB as it considers introducing the digital euro.
The ECB’s working paper, titled “Consumer Attitudes Towards a Central Bank Digital Currency,” surveyed around 19,000 individuals across 11 eurozone countries. The findings revealed significant communication barriers that deter European households from embracing the digital euro.
When participants were asked how they would hypothetically distribute 10,000 euros (approximately $10,800) among different assets, only a small fraction was allocated to the digital euro. This allocation showed minimal impact on traditional forms of liquid assets such as cash, current accounts, or savings.
According to the ECB’s March 12 report, Europeans remain strongly attached to existing payment methods and do not perceive significant advantages in adopting a new digital currency, given the abundance of current offline and online payment solutions:
“This result indicates that persuading consumers of the added value of a CBDC could be a difficult task for policymakers, necessitating further research in this domain.”
The study pointed out that while a digital euro could be implemented with little disruption to financial stability, its acceptance faces substantial obstacles due to ingrained consumer habits. Moreover, it underscored the need for focused communication strategies to address the persistent hesitation surrounding the digital euro.
The ECB also discovered that European consumers responded positively to video-based educational content. The study concluded that informative videos explaining the key features of the digital euro could play a crucial role in encouraging its broader adoption:
“There is evidence suggesting that individuals who watch a brief, well-structured video outlining the primary aspects of the digital euro are significantly more inclined to reconsider their stance on this new payment option, thereby increasing their likelihood of adopting it compared to those who receive no such information.”
The release of this study coincides with increasing resistance to CBDCs among US lawmakers. During a March 11 hearing at the House Financial Services Committee, Representative Tom Emmer emphasized the need for legislative measures to counter CBDC implementation in the United States.
Emmer argued that “CBDC technology contradicts American values” and insisted that unelected officials should not have the authority to introduce such a system. He also reintroduced the CBDC Anti-Surveillance State Act, aimed at preventing future US governments from launching a CBDC.
Meanwhile, Deutsche Börse CEO Stephan Leithner recently advocated for the establishment of a permanent digital euro, along with other financial reforms, to enhance the region’s economic independence.
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