The European Central Bank (ECB) is encountering resistance from consumers regarding the adoption of a central bank digital currency (CBDC), according to new research conducted by ECB economists. 

The findings suggest that a significant portion of Europeans prefer existing payment methods over the proposed digital euro, raising concerns about the project's viability.

A recent ECB study surveyed European consumers to gauge their willingness to use a digital euro, revealing that many remain skeptical or uninterested. 

While awareness of the digital euro has increased over time, actual enthusiasm for its adoption has not kept pace. The study notes that consumer preferences for traditional banking and digital payment services remain strong, with a substantial portion of respondents stating they would not switch to a CBDC.

The research also tested whether providing consumers with additional information about the digital euro’s features would influence adoption rates. 

A randomized control trial was conducted where some survey participants were shown an explanatory video about the digital euro. The results indicated that while the video increased the likelihood of adoption by 12 percentage points among those who watched it, the overall level of interest remained relatively low. 

Furthermore, when given the option to learn more about the digital euro, most consumers declined, suggesting that initial resistance is not merely due to a lack of information but also ingrained payment habits.

Another key finding of the report is that European consumers would allocate only a small portion of their liquid assets to a digital euro if it were introduced. 

When asked how they would distribute a hypothetical financial windfall, most respondents favored traditional liquid assets such as cash, current accounts, and savings accounts over the digital euro. 

Additionally, researchers found that imposing holding limits between €1,000 and €10,000 had minimal impact on consumer interest, suggesting that restrictive policies would not significantly alter adoption patterns.

The ECB began its preparation phase for the digital euro in October 2023, aiming to establish regulatory frameworks and technical infrastructure. 

However, the study highlights a significant communication challenge for the central bank. Consumers who are already accustomed to existing digital and traditional payment methods show little motivation to switch. 

The findings suggest that for the digital euro to gain widespread adoption, repeated and targeted communication campaigns will be necessary, particularly toward consumers less inclined to explore new payment options.