European consumers appear to be less enthusiastic about accepting central bank digital currencies (CBDCs), raising concerns for the European Central Bank (ECB) as it prepares to explore the potential of a digital euro. An ECB report on "Consumer Attitudes Towards Central Bank Digital Currencies" surveyed around 19,000 people from 11 euro area countries, revealing significant communication challenges that are limiting the acceptance of a digital euro by European households.
When asked about the hypothetical allocation of 10,000 euros (equivalent to $10,800) across different assets, Europeans allocated only a small portion to a digital euro, with little impact on traditional liquid assets such as cash, current accounts, or savings accounts. According to the ECB's assessment on March 12, Europeans are very fond of current payment methods and do not see the real benefits of a new payment system among the myriad of online and offline alternatives.
Consumers are hard to convince about the added value of CBDCs, and more research is needed in this area. While a digital euro could be introduced without major disruption to financial stability, its adoption faces significant hurdles due to consumer habits. The report emphasizes the importance of targeted communication to address the persistent concerns of consumers regarding the digital euro.
The ECB report found that European consumers are receptive to educational and video-based training, concluding that the delivery of short, clear videos on the key features of the digital euro could help drive widespread acceptance.
Meanwhile, US lawmakers are increasing their opposition to CBDCs. Representative Tom Emmer argues that Congress should prioritize laws supporting stablecoins alongside legislation against CBDCs. Emmer believes that CBDC technology goes against American values and should not be permitted to be issued by unelected officials. Additionally, Deutsche Börse CEO Stephan Leithner has called for the establishment of a long-term digital euro to strengthen the financial autonomy of the region.
