Digital Euro: Increasing awareness but stagnating interest - Why traditional payment methods continue to dominate

Digital Euro: Increasing awareness but stagnating interest - Why traditional payment methods continue to dominate

Growing awareness, stagnating acceptance: the digital euro in focus

New research from the European Central Bank (ECB) shows that awareness of the digital euro has increased significantly among the population, while interest in its actual use remains limited. A comprehensive survey of 19,000 households in 11 EU countries reveals a key hurdle: many people are completely satisfied with their current payment methods.

Awareness of the digital euro increased

The study found that awareness of the digital euro, a central bank digital currency (CBDC), has increased. While only 28% of respondents were open to the digital euro in August 2022, this figure rose to 45% by June 2023. However, adoption has stagnated since then and remained almost unchanged until March 2024. Although more and more people are informed about the digital euro, many see no reason to give up their usual payment methods such as credit cards or mobile payment services. Given that 97% of households already have a bank account, the digital euro seems unnecessary to many.

The effect of education is only short-term

In order to increase acceptance, the ECB tested the effects of educational measures. Participants who saw a 90-second video explaining the benefits of the digital euro were more likely to reconsider their opinion. However, this effect turned out to be short-lived. After three months the effect had largely worn off. In addition, most participants did not take advantage of the opportunity to obtain further information, even though this was offered free of charge. This suggests that one-off communication measures are not enough. The ECB needs to develop clear, repeated and targeted messages to stimulate interest, particularly among disinterested people.

A “blanket” of acceptance?

The study warns that adoption rates may have reached a “ceiling.” Over 50% of respondents show no willingness to use the digital euro, mainly due to their satisfaction with existing payment methods. The authors of the study emphasize that a significant proportion of consumers are unlikely to adopt the digital euro, as they clearly have a preference for the payment methods they already use.

Data protection concerns as a stumbling block

Another factor that could slow down the acceptance of the digital euro are data protection concerns. Critics, such as Donald Trump, who promised before his election to prevent a digital dollar, warn about the surveillance possibilities that come with CBDCs. Such concerns could also have a negative impact on the acceptance of the digital euro in the EU. The ECB faces the challenge of allaying these fears and positioning the digital euro as an innovation that promotes security and inclusion rather than exerting control.

Conclusion

Despite the increased awareness, enthusiasm for the digital euro remains muted. The ECB must convince through continuous education and highlighting clear advantages in order to overcome satisfaction with the status quo. This is the only way the digital euro can become more than a well-known but unused concept.