A lot of skepticism about the possible digital euro

Released on 25.10. 2021

  • It has not yet been decided whether a digital euro will come. Photo: Karl-Josef Hildenbrand

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Europe’s monetary authorities are working on a digital version of the European common currency. It has not yet been decided whether a digital euro will come.

Frankfurt / Main (dpa) – According to a Bundesbank survey, four out of ten citizens in Germany can basically imagine using a digital euro in the future.

However, there is also still a lot of skepticism towards the project driven by the euro central banks, as the survey published on Monday shows.

More than half (56 percent) of the respondents stated that they did not support the introduction of a digital euro. However, in its October monthly report, the Bundesbank points out that “the concept of the digital euro was still largely unknown to the general public at the time of the survey.”

Europe’s monetary authorities have been checking since for a while the possible introduction of a digital variant of the European common currency. In mid-July 2021 the European Central Bank (ECB) decided to take the preparatory work to the next level: it is now about a two-year investigation phase about technology and data protection. It has not yet been decided whether a digital euro will come.

Skepticism towards the digital euro

«Especially convinced cash payers are rather skeptical of the digital euro, ”stated the Bundesbank. Almost two thirds (61 percent) of those who expressed their negative opinion in the survey fear that a digital euro is the entry point into a Abolition of cash would be. Both the ECB and the Bundesbank have repeatedly assured that a digital euro would come as a supplement to cash, not as a replacement for notes and coins Questions about ease of use, respect for privacy, security with regard to data protection and universal applicability. For many respondents, a digital euro represents an opportunity to «avoid the commercial use of personal data by private sector actors», reported the Bundesbank.

The work on a digital euro is one answer of the euro central banks on the steep rise of cryptocurrencies such as Bitcoin and Ether. The big difference: In contrast, a digital euro would be under the supervision of a central bank, which ensures the stability of the currency.

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