Most important digital euro – Economy & Volkswagen – News

Many people in Germany view the European Central Bank’s (ECB) work on the digital euro with skepticism. In a survey commissioned by the Association of German Banks (BdB), three quarters of respondents (76 percent) agreed “very much” or “rather” that the digital euro was not necessary because the existing payment options were completely sufficient.

However: Less than a third (29 percent) of respondents currently have any idea about how a digital variant of the common European currency could be designed and what the digital euro could be used for.

Henriette Peucker, deputy general manager of the BdB, warned that it was important for the ECB to take the people: “What should the digital euro look like? What benefits does it bring, but also what are the risks? The central bank should answer these important questions so that the project reaches ordinary society.”

The digital euro is not intended to replace cash

To counter the rapid rise of so-called cryptocurrencies such as bitcoin and ether, the eurozone’s regulators have been exploring the possibility of introducing a digital version of Europe’s common currency for some time. In mid-July 2021, the ECB decided to take the preparatory work to the next level: Since October 2021, the two-year investigation phase has been about technology and data protection. It is not yet decided whether the digital euro will come. In any case, the digital euro should support cash and not replace it. The digital euro is not expected to be introduced before 2026 at the earliest.

“The digital euro can only be successful if it is accepted and used by the European population. As long as the benefits and risks are not clear, the project remains volatile – and consumers will continue to use the digital payment options they already know and trust,” said Peucker.

In a statement published in February, the BdB maintains that the digital euro can give the fragmented European market for electronic payments a solid boost. In the current survey, one fifth of the 1008 respondents (21 percent) agreed “very much” or “somewhat” that the digital euro will make it easier to pay.