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A new study from the European Central Bank (ECB) has found that most Europeans have little interest in using a potential digital euro, should the ECB commit to issuing one.
Following its most comprehensive study to date, the ECB admits that it faces an uphill battle to stimulate future adoption of the digital euro.
The study, published last week, is based partly on monthly survey data from more than 19,000 households in 11 eurozone countries, beginning from 2020 onwards.
This older survey data was then combined with a more recent survey, conducted in March 2024, plus a follow-up survey conducted in June 2024.
The ECB claims that the 2024 section of the study is the first of its kind to be conducted by any central bank.
In this section, the ECB used a randomised controlled trial (RCT) to investigate the impact of central bank communication on consumers’ willingness to adopt the digital euro.
Almost 20,000 individuals took part in this section of the study, with the full sample group being split 50/50 between a control group and a treatment group.
The treatment group was shown a 90-second promotional video about the digital euro produced by the ECB, whereas the control group was not.
The treatment group was then further divided into two sub-groups, one of which was given the option to receive more information about the digital euro after watching the video, and the second of which was not.
The study found that the majority of consumers in both the treatment group and the control group said it is “unlikely” or “very unlikely" that they would make retail payments using a digital euro.
Almost 70 percent of consumers in the control group fell into these two categories, as did almost 60 percent of consumers in the treatment group, even after watching the ECB’s video.
Moreover, when those in the second treatment group were offered more information about the digital euro after watching the video, most did not take up the offer.
Reasons for lack of interest
When asked why they did not plan on using the digital euro for retail payments, the most common reason given was that alternative, non-cash payment methods are currently sufficient.
Source: ECB, Working Paper Series, Consumer attitudes towards a central bank digital currency
Among those in the control group who said they do not intend to use the digital euro for day-to-day, in-person payments, almost 45 percent said this was due to satisfaction with existing payment methods.
Around 10 percent attributed their lack of willingness to concerns around the security, anonymity, acceptance or cost of using the digital euro respectively, while the remainder referred to “another reason not listed” by the survey.
Enthusiasm low, but ECB sees potential for persuasion
Concluding its report, the ECB writes that the study provides several “novel” findings.
The first is that “concise” and "practical" communications about the key features of the digital euro — particularly when transmitted by video — can affect consumers’ willingness to use it.
“As we argue, there is clear scope for effective communication to change consumer beliefs about this new form of payment and ultimately encourage its adoption,” the report notes.
“However, for such communication to be effective, it needs to be targeted, well-designed, and repeated.
“Repeated communication appears necessary because the effects that we estimate seem to dissipate rather quickly.”
Here the ECB is referring to the follow-up survey, conducted in June 2024, which found that few consumers had sought out additional information about the digital euro of their own volition, and hence their attitudes towards it were unlikely to change.
At the same time, the ECB admits that a “non-trivial” portion of consumers show a strong preference for existing payment methods, and the idea of convincing these consumers to use the digital euro seems “far-fetched”.
“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 report notes.
Current timeline to a potential launch
In October 2025, the Governing Council of the ECB will decide whether to move to the next stage of preparations for the digital euro.
The launch of the preparation phase is not a decision on whether to issue a digital euro, as that decision will only be considered by the Governing Council once the EU’s legislative process has been completed.
In June 2023, the European Commission published its legislative proposal for the establishment of a legal framework for a potential digital euro.
The legislative proposal currently suggests legal tender status for the digital euro, ensuring that it would be widely accepted as a means of payment across the eurozone.
The ECB has also said it will take into account any adjustments to the design of the digital euro that may become necessary as a result of legislative deliberations.
