The digital euro is a Central Bank Digital Currency (CBDC) to be issued by the European Central Bank for the 20 EU countries using the euro. The digital euro aims to complement cash, offering a safe, efficient, and widely accepted payment method in a digital world, and promoting financial inclusion for those without private digital payment access.
Europeans wary of the Digital Euro
Despite the potential benefits, the new study paints a sobering picture of how Europeans feel about the digital euro. One of the biggest challenges is that many people simply don’t see the need for it. The study shows that a significant number of consumers are perfectly happy with the payment methods they already use, such as contactless cards, smartphone apps, or even cash.
For these people, the digital euro feels unnecessary, and convincing them of its added value will be an uphill battle for the ECB. The study tested this by asking people how likely they would be to adopt the digital euro. The results were clear: for a “non-trivial fraction” of consumers—meaning a sizable group—the idea of using a digital euro seems far-fetched.
These individuals expressed a strong preference for their current payment options, which they believe already meet their needs. For example, if someone can already tap their card or phone to pay for groceries quickly and securely, why would they switch to a digital euro? This skepticism suggests that the ECB will need to work hard to demonstrate why the digital euro is worth adopting.
Challenges of awareness
Another major hurdle revealed by the study is that people quickly forget about the digital euro, even after being informed about it. The researchers conducted an experiment in which they provided consumers with clear and simple information about the digital euro’s key features, such as its similarity to cash and its security
Initially, this information boosted interest in its adoption, demonstrating the impact of effective communication. However, when researchers checked back three months later, in June 2024, they discovered that many people had already forgotten what they had learned.
This “fading effect” suggests that even if the ECB succeeds in generating interest in the digital euro, it must continuously remind people about it through recurring, targeted, and well-crafted communication campaigns. A one-time explanation won’t suffice.
Older Europeans are especially resistant
The study also uncovered a troubling trend related to age. Older consumers are much less interested in using the digital euro compared to younger people.
This “age gradient” is a significant concern because it could undermine the ECB’s goal of financial inclusion—ensuring that everyone, regardless of age or background, can use the digital euro.
Older Europeans, who may be less comfortable with technology or more attached to cash, showed a strong aversion to adopting this new form of money.
This resistance poses a challenge for policymakers, who will need to find ways to make the digital euro accessible and appealing to older generations. Without extra support, such as easy-to-use apps or in-person assistance, the digital euro risks leaving these consumers behind.
Limited use, even if adopted
Even among those who might be open to trying the digital euro, the study suggests it wouldn’t play a major role in their finances. The researchers asked respondents what they would do if they suddenly received extra money, like a bonus or a windfall.
On average, respondents indicated they would allocate only a small portion of their money to a digital euro account, preferring to keep most in other forms, such as cash, bank accounts, or investments like stocks and bonds.
This suggests that even if the digital euro becomes available, many Europeans would use it sparingly, treating it as a minor part of their financial lives rather than a primary payment method.
Holding limits for digital euro
Another issue that could discourage adoption is the maximum amount of digital euros a person can hold in their digital wallet at any given time. The ECB is considering setting such limits to protect traditional banks.
If people can hold too much money in digital euros, they might move large amounts out of their bank accounts, which could hurt banks’ ability to lend money and maintain financial stability.
However, the study found that setting a very low limit could make the digital euro inconvenient for everyday use, such as frequent purchases or larger transactions, further reducing its appeal to consumers.
Interestingly, the study tested different holding limits, ranging from €1,000 to €10,000, and found that the specific amount didn’t make much difference to how people would manage their money. Whether the limit was low or high, people’s decisions about where to keep their money—whether in cash, bank accounts, or other investments—stayed mostly the same.
This suggests that while holding limits is important, they may not be the biggest factor in whether people adopt the digital euro. Still, the ECB will need to carefully balance convenience for users with stability for banks, and the study warns that a limit that is too restrictive could discourage use altogether.
A late 2023 survey by the Bank of Spain found that 65% of Spaniards were uninterested in the digital euro. While the Bank of Spain supports adopting a digital euro, the population seems less enthusiastic about the European Central Bank’s initiative.
Only 20% of respondents said they would use a digital euro alongside regular payment methods. Interest in the digital euro declines with age: 31% among 25 to 34-year-olds, 24% among 35 to 44-year-olds, 18% among 55 to 64-year-olds, and just 7% among those 65 or older.
The study also suggests that the ECB might consider highlighting how the digital euro is similar to cash, as this could help ease people’s concerns and make it feel more familiar.
