According to a survey by the digital association Bitkom, Germans have mostly heard about the plans to introduce the digital euro, but hardly anyone seems to understand them. 52 percent stated they had heard or read about the digital euro before. However, only 8 percent said they could explain what it is.
Another 23 percent have a general idea of what it is. 21 percent said they had heard the term before but did not know exactly what it meant. In contrast, 41 percent stated they had never read or heard of the digital euro. According to Bitkom, the survey is representative; 1,004 people were surveyed.
Understandable explanations needed
“Politics, central banks, and the economy must explain early and comprehensibly how the digital euro works, what role it plays alongside cash and existing digital payment methods, and above all, what its benefits are,” emphasized Bitkom CEO Dr. Bernhard Rohleder. The digital euro is an important building block for a modern, sovereign, and competitive payment system in Europe, Rohleder added.
The European Central Bank (ECB) is currently aiming to introduce the digital euro by 2029. It is intended to complement cash in the euro area as digital central bank money and reduce the dependence of online payment transactions, particularly on US providers like Visa, Mastercard, or PayPal. Last week, after lengthy deliberations, the European Parliament adopted its position on the relevant legislative package, and the so-called trilogue negotiations are now beginning in Brussels. These are the final negotiations between the EU Parliament, the EU Commission, and the governments of the member states in the EU Council, which will result in a final law on the digital euro.
According to the Parliament’s will, the digital euro should be available for payments both online and offline. However, it is not intended to replace cash, and citizens will continue to have a choice of payment methods. In addition to the design of offline payments, issues of data protection and anonymity, the role of commercial banks, balance limits, payment fees, and similar questions are likely to be subjects of negotiation. The ECB estimates the total cost of the project at around 1.3 billion euros by 2029, with annual operating expenses from 2029 projected at 320 million euros per year. Banks and savings banks remain skeptical about the project and are strongly advocating for the payment service Wero as a better alternative.
(axk)
