German Public Wary of Digital Euro’s Surveillance Potential

Half Can Imagine Using Digital Euro, Bundesbank Survey FindsGermany’s central bank, the Deutsche Bundesbank, has revealed the results of a survey on the digital euro.

The survey, conducted in April 2024 among 2,012 participants, indicates that a significant portion of the German public is open to the idea of a central bank digital currency (CBDC).

According to the Bundesbank, nearly half of the respondents (around 50%) expressed a willingness to “generally imagine using a digital euro as an additional payment option.” This suggests a potential openness to adopting the digital euro once it becomes available.

“People who were previously unaware of the digital euro also indicated that they were open to this new means of payment in the survey. The survey revealed that only 41% of respondents had already heard, read or seen some information about the digital euro, whereas 59% did not know anything about it.”

Deutsche Bundesbank

However, the survey also highlights lingering concerns about potential surveillance. Around 8% of respondents expressed a belief that the digital euro is a tool for monitoring citizens’ payments, according to Deutsche Bundesbank president Joachim Nagel. This indicates a need for further public education and transparency. Nagel acknowledged this, stating that “a great deal of information still needs to be provided” to address these anxieties.

“The survey shows us that a great deal of information still needs to be provided and that we have set the right priorities, such as privacy protection, in the preparatory work for the new European means of payment.”

Joachim Nagel

Highlighting the need for further education, Burkhard Balz, Deutsche Bundesbank executive board member responsible for cash and the digital euro project, pointed out a knowledge gap among respondents. He noted that 16% of participants mistakenly believed the digital euro to be a cryptocurrency, indicating a need for clear communication to differentiate between the two concepts.

“The prices of crypto-assets such as Bitcoin or Ethereum fluctuate strongly. They do not fulfil the traditional functions of a currency; the stability of their value is not vouched for by a central bank.”

Burkhard Balz

In contrast to the recent survey’s findings on surveillance concerns, a separate Bundesbank survey conducted in early May revealed a more positive outlook. That survey, focused on public sentiment during potential banking crises, indicated that nearly 90% of German households were “open” to using a CBDC. Interestingly, almost half of the respondents expressed willingness to hold digital euros even without any interest earned on them. This suggests a potential base of early adopters for the digital euro, despite lingering concerns identified in the more recent survey.