A growing chorus of skepticism is challenging the European Central Bank’s (ECB) ambitious plan to introduce a digital euro, according to a newly released survey. Conducted by the Center for Financial Studies (CFS) at the Goethe University Frankfurt and reported by “Welt” the research reveals deep reservations within the financial sector regarding the need and potential success of the digital currency initiative.
The survey, which forms part of a quarterly management survey encompassing firms within Germany’s financial hub, found that a striking 62.3% of financial professionals and executives believe a digital euro is unnecessary, given the already extensive range of existing payment instruments. This sentiment extends to consumer acceptance, with two-thirds of respondents forecasting low to very low adoption rates among private individuals.
“The survey clearly demonstrates a degree of skepticism within the financial industry toward the current proposed form of the digital euro” stated Volker Brühl, Managing Director of the CFS. “The prevailing expectation is one of limited customer acceptance, raising serious questions about the viability of the project.
Data security and cybersecurity concerns also loom large. Almost half (49.6%) of those surveyed expressed significant worry about the potential compromise of personal data, highlighting a critical vulnerability inherent in digital central bank money. Brühl underscored that the ECB must provide more robust assurances on cybersecurity, acknowledging that complete security is unattainable.
The results emerge at a critical juncture, as the ECB accelerates preparations for a pilot launch of the digital euro in 2027. While proponents, including the German Bundesbank, have framed the initiative as essential for safeguarding Europe’s monetary sovereignty and reducing reliance on US-based payment processors like Visa and Mastercard, the criticisms are gaining traction.
Many commercial banks and savings institutions have voiced reservations, primarily focused on the potential disruption to their business models. The core concern isn’t about the concept itself, but rather how its implementation could erode traditional banking practices. A significant fear is that customers will shift funds from traditional deposit accounts into digital wallets, effectively depriving banks of crucial deposits.
In response to the survey findings, the ECB reiterated that the digital euro is intended to ensure continued access to central bank money in digital form for European citizens in an increasingly digitized world, a ‘complement’ to banknotes and coins. It noted that an ongoing user behavior survey aims to further assess public attitudes towards holding a digital euro, with a claimed 66% expressing interest in trying it. However, that reported interest is undermined by the broader, more critical sentiment revealed within the financial sector itself, raising doubts about the ECB’s strategic direction and the potential for the digital euro to meet its stated objectives. The question now becomes whether the ECB can adequately address these concerns, or if the project will face a deeper, more protracted challenge to its legitimacy and eventual success.
