Digging into Digital Euro Preferences
A recent survey suggests that a digital euro could find favor among German cash enthusiasts. Conducted by YouGov for BearingPoint, the survey reveals that 8% of 2040 respondents would utilize a digital euro daily, while an additional 12% would do so twice or thrice a week. However, a quarter of participants (25%) expressed their unwillingness to use a digital euro, altogether.
Interestingly, a sliver of respondents (13%) anticipates that the digital euro will replace cash within the first five years of its launch. Meanwhile, around 25% are confident in other digital payment methods like cards, Google Pay, Apple Pay, or PayPal, claiming they may supersede the digital euro. Remarkably, 33% of survey participants stated they were unfamiliar with a digital euro, as they hadn't encountered the concept before the survey, which was conducted across seven countries between September 11 and 22, 2023.
Summarizing the results, BearingPoint partner Robert Bosch stressed the need to expand the level of awareness about the digital euro to foster its acceptance as a complementary option to physical cash.
Anticipating the Arrival of Digital Euro
According to Bundesbank board member Burkhard Balz, who is part of the project, the digital euro may not hit the market before another four to five years have passed. In essence, both traditional banks and individuals would receive the digital euro in much the same manner as physical cash. Money transfer would be facilitated through digital wallets, enabling instant payments around the clock, even without an internet connection, using a smartphone.
The European Central Bank and the EU Commission contend that the introduction of digital euros could bolster competition in the digital payment landscape, potentially leading to lower expenses for consumers. At present, private entities from the United States are dominating the European digital payment market, and the digital euro is seen as a tactical countermeasure to solidify a European digital payment offering.
With the collective efforts of over 100 countries worldwide, experts are unraveling the mysteries surrounding central bank digital currencies (CBDCs).
