A recent study by the European Central Bank (ECB) showed that European consumers are not very interested in the adoption of the digital euro.
This data represents a significant challenge for policymakers, who will need to find effective strategies to encourage the use of this digital currency.
ECB Questionnaire: little attention for the digital euro
The study, called “Consumer attitudes towards a central bank digital currency”, involved approximately 19,000 people in 11 countries of the euro area.
The results highlighted that the majority of respondents prefer to use traditional payment methods, such as cash, current accounts, or deposit accounts, rather than allocating funds to the new digital currency.
The ECB asked participants to hypothesize an investment of 10,000 euros divided among different payment options.
The central bank digital currency was chosen only for a small percentage of the total, indicating a clear preference for already established instruments.
One of the main reasons for the low inclination to use the digital euro is the lack of perceived added value compared to the financial instruments already available.
Citizens prefer to continue using reliable and widespread payment methods, both for online and offline transactions.
According to the study:
“This result suggests that convincing some users of the added value of a CBDC could represent a challenge for policymakers, and further research in this area will certainly be necessary.”
In other words, consumers do not see the digital euro as an indispensable innovation, making its large-scale adoption more difficult.
Even if the launch of this digital currency could occur without drastically impacting financial stability, the question remains of how to incentivize users to use it.
The role of communication to overcome resistances
Given the current resistance, the ECB has emphasized the importance of an effective communication strategy to clarify the benefits of the digital euro.
According to the study, one of the most useful ways to engage the European audience is the use of educational video content.
In particular, the participants who watched a short informational video about the characteristics of the new currency were more inclined to change their opinion and adopt the new payment instrument:
“Consumers who are shown a short video with clear and concise communication about the key features of the digital euro are significantly more likely to change their opinion about this new form of payment, thereby increasing their immediate likelihood of adopting it compared to an untreated control group.”
This suggests that a structured informational campaign could positively influence citizens’ opinions, stimulating greater interest in digital currency.
While in Europe solutions are being sought to promote the adoption of the digital euro, in the United States opposition to central bank digital currencies (CBDC) is growing.
During a hearing of the House Financial Services Committee, Representative Tom Emmer stated that the U.S. Congress should firmly oppose CBDCs. According to Emmer:
“CBDC technology is inherently anti-American.”
Furthermore, Emmer has reintroduced the CBDC Anti-Surveillance State Act, a bill that aims to prevent future U.S. administrations from introducing a national digital currency.
Europe Divided Between Caution and the Need for Innovation
If in the United States CBDCs are strongly opposed, in Europe the debate remains open. On one hand, consumers appear reluctant, on the other hand, some financial leaders emphasize their strategic importance.
The CEO of Deutsche Börse, Stephan Leithner, has indeed highlighted how a digital euro could strengthen Europe’s financial independence.
This vision contrasts with the current difficulties of acceptance by users, creating a challenge for the European institutions.
Despite the efforts of the ECB, the lackluster enthusiasm of Europeans for the digital euro represents a significant obstacle to its introduction.
The absence of a clear competitive advantage compared to existing payment methods hinders adoption, while information and communication could prove to be essential tools to convince consumers of the value of the new currency.
In the meantime, the discussion remains open: while in Europe strategies are being evaluated to integrate the digital euro into the financial system, in the United States opposition to central bank-issued digital currencies is strengthening. The future of CBDCs, therefore, remains uncertain.
