Germans Open to Digital Euro Despite Limited Knowledge

A survey conducted by forsa for the Deutsche Bundesbank reveals that Germans are generally open to the idea of a digital euro, although many lack sufficient information about it. The study surveyed 2,012 individuals, showing varied levels of awareness and understanding.

According to the survey, half the respondents were willing to use the digital euro as an additional payment method. This openness was noted even among those unfamiliar with the concept. However, only 41% of participants had received any information about the digital euro, leaving 59% in the dark. Privacy was a major concern, with over 75% prioritizing privacy protection.

Survey Highlights Privacy Concerns

Privacy issues are reminiscent of those faced with China’s digital yuan, where recipients often convert the digital currency to cash immediately. To mitigate these concerns, the digital euro’s planned offline version aims to offer privacy protections similar to those of cash. Joachim Nagel, President of the Deutsche Bundesbank, assured that central banks in the Eurosystem prioritize protecting user privacy more effectively than current commercial payment options.

The survey also indicated that 72% of respondents believe the digital euro should be developed on a European infrastructure to ensure independence from global political influences. There were misconceptions among respondents, with 15% thinking the digital euro would replace cash and 12% believing cash would be phased out. Burkhard Balz, an Executive Board member of the Deutsche Bundesbank, clarified that cash would remain a fundamental offering of the bank.

Timeline and Development

The digital euro initiative, launched by the European Central Bank (ECB) in July 2021, aims to create a secure electronic payment system that complements existing euro forms. After two years of research into its design and distribution, the ECB moved into the next preparation phase in October 2023. This phase will continue until October 2025, when further decisions will be made. According to President Nagel, the digital euro is anticipated to launch between 2028 and 2029, with a strong focus on privacy protection.

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