Investigations are underway to prepare the financial sector for a Digital Euro. However, before that, central banks need to check in with the public and understand how private citizens view the proposed CBDC.
Deutsche Bundesbank – the central bank of the Federal Republic of Germany – did just that and recently reported its findings.
Deutsche Bundesbank released the results of a survey assessing how private households in the country feel about a Digital Euro. Along with it came an official brief in German titled, “The discussion about the digital euro is slow to reach consumers.”
To be clear, very few Germans are enthusiastic. The central bank noted,
“Accordingly, only 13 percent of those questioned supported the introduction of a digital euro. Of those who already had previous knowledge of the topic, it was 22 percent.”
Even so, the report observed that more people are growing aware of the Digital Euro. Deutsche Bundesbank concluded that attitudes might change over time, especially with more information about the project.
To be perfectly ‘Frank-furt’
What about those in favor? Many believe the Digital Euro will let them bypass private payment processors, maintain their privacy, safeguard their data, and enjoy easy universal use. The report added,
“Of those in favor of the digital euro, 65% saw it as a good alternative to cash and 63% as a good alternative to private means of payment…Around 61% of the supporters also found that a digital euro is part of a digitized society.”
Meanwhile, a majority of the respondents who are against the Digital Euro fear it would lead to cash being abolished. Factoring this in, the report found,
“This reinforces the Eurosystem’s intention to offer the digital euro in addition to cash and not in its place, should a decision be made to introduce it.”
Finally, Deutsche Bundesbank also suggested that better communication with the public will be necessary for a “successful introduction.”
Thus, the question – Can Germans eventually accept a CBDC? The report revealed,
“40% of all respondents could basically imagine using a digital euro in the future…”
A ‘German-ating’ project
Newswires started flashing after it was announced that the European Central Bank (ECB) had finalized 30 business experts to form the Digital Euro project’s Market Advisory Group. These professionals will support the Eurosystem as it prepares for the possible creation of a CBDC.
On that note, Europeans can expect to answer more surveys about the Digital Euro and their feelings about the same.