European consumers have shown a little interest in adopting a central digital currency (CBDC), which raises concerns for the European Central Bank (ECB) as it prepares for a potential digital euro control.
An ECB role working on “Consumer’s thoughts to a central digital bank currency,” reviewing about 19,000 respondents throughout 11 countries, emphasizing important communication challenges that disturb European households from the Digital Euro’s adoption.
When requested to be hypothetically allocated 10,000 euros (approximately $ 10,800) in different possessions, Europeans are allocated only a small portion to the digital euro, with minimal impact on traditional liquid ownership such as cash, current accounts or saving accounts.
Factors for not adopting a digital euro for retail payments. Source: European Central Bank
According to In the paper working on the March 12 ECB, Europeans have a strong preference for existing payment methods and do not see the real benefit to a new type of payment system amid many offlines and online alternatives:
“This search also suggests that convincing some users’ users added by a CBDC could cause a challenge for policies, and more research will definitely be needed in this area.”
The study suggested that while a digital euro could be introduced with minimal financial stability, its adoption faced significant obstacles due to consumer practices.
In addition, it emphasized the importance of targeted communication to address the consumer’s ongoing reluctance to a digital euro.
Post-treatment attention checks conducted on European respondents. Source: ECB
The ECB role found that European consumers have accepted video and training education and concluded that teaching mass with CBDC-related video-related information can help with widespread digital euro adoption:
“We have found evidence that consumers who have shown a short video providing concise and clear communication about the key features of the digital euro are more likely to update their beliefs about this new form of payment, which, in turn, increases their immediate possibility of adopting it compared to an unemployed group.”
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The release of the study came as US lawmakers intensified their opposition to the CBDCs. Speaking to House Financial Services Committee Hearing on March 11, Representative Tom Emmer said that Congress should “prioritize pro-stablecoin law along with Anti-CBDC law.”
Emmer speaks of the House Financial Services Committee’s hearing on CBDCs. Source: Emmer.House.gov
Emmer said, “CBDC’s technology is naturally un-American” and unshakable officials should not be allowed to issue it. Emmer din Re-recorded CBDC Anti-Surveillance State Actthat will prevent future US administrations from launching CBDCs.
Meanwhile Deutsche Börse CEO Stephan Leithner recently called Establishment of a permanent digital euroAmong other reforms, to strengthen regional financial autonomy.
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