European consumers have shown minimal interest in adopting a central bank digital currency (CBDC), raising concerns for the European Central Bank (ECB) as it prepares for a potential rollout of the digital euro.
An ECB working paper on “Consumer attitudes towards a central bank digital currency,” which surveyed about 19,000 respondents across 11 euro-area countries, highlighted significant communication challenges that are discouraging European households from adopting the digital euro.
When asked to hypothetically allocate 10,000 euros (roughly $10,800) across various assets, Europeans allocated only a small portion to the digital euro, having little impact on traditional liquid assets like cash, current accounts or savings accounts.
Reasons for not adopting a digital euro for retail payments. Source: European Central Bank
According to the March 12 ECB working paper, Europeans have a strong preference for existing payment methods and see no real benefit in a new type of payment system amid myriads of offline and online alternatives:
“This finding also suggests that 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.”
The study suggested that while a digital euro could be introduced with minimal disruption to financial stability, its adoption faces significant hurdles due to consumer habits.
Additionally, it stressed the importance of targeted communication to address persistent consumer reluctance toward a digital euro.
Post-treatment attention checks conducted on European respondents. Source: ECB
The ECB paper found that European consumers were receptive to video-based education and training and concluded that educating the masses with CBDC-related video information could help with the widespread adoption of the digital euro:
“We find evidence that 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, which, in turn, increases their immediate likelihood of adopting it compared to an untreated control group.”
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The study’s release comes as US lawmakers intensify their opposition to CBDCs. Speaking at the House Financial Services Committee hearing on March 11, Representative Tom Emmer said Congress should “prioritize pro-stablecoin legislation alongside anti-CBDC legislation.”
Emmer speaks during the House Financial Services Committee Hearing on CBDCs. Source: emmer.house.gov
Emmer said, “CBDC technology is inherently un-American” and unelected officials should not be allowed to issue it. Emmer also reintroduced the CBDC Anti-Surveillance State Act, which would prevent future US administrations from launching CBDCs.
Meanwhile, Deutsche Börse CEO Stephan Leithner recently called for the establishment of a permanent digital euro, among other reforms, to strengthen the region’s financial autonomy.
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