While the European Central Bank is studying the possible issuance of a Europe-wide CBDC, the digital euro, not all Europeans are fully behind this idea. Germany is particularly concerned about the privacy aspects of this implementation, as most transactions and payments are still made using cash, and citizens are reluctant to share their personal information.
Privacy Concerns Worry Germany About the Possible Implementation of a Digital Euro
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Germany Not Completely Sold on the Digital Euro for Privacy Concerns
The digital euro faces tailwinds regarding its acceptance in certain parts of Europe. Germany is one of these countries where citizens have concerns about their privacy and even a reluctance to share personal data when making payments, according to Bloomberg.
In Germany, most (51%) of the transactions are still completed using cash per Bundesbank data, being the preferred payment method. Debit card payments are second, with only 27% of the transactional share. Mobile payments account for 6% of these transactions.
This cash preference has been acknowledged by the president of the Bundesbank, Joachim Nagel, who has described it as “sacred.” This has also been reflected in a survey indicating that only half of the Germans would be willing to use the digital euro while the other half probably won’t or definitely won’t use it.
The European Central Bank says it will address these worries by using encryption to make transactions and their originating users impossible to link. Also, to allow more people to use this digital currency, it plans to issue digital euro-linked cards, easing the onboarding of less tech-savvy users to the ecosystem.
Nagel explains that the digital euro will not make cash disappear and will be a complement. In July he stated:
The older generation — which I will soon be part of when I’m over 60 — is so digitally savvy these days that I honestly don’t really need to reach out to them anymore. They understand what’s happening.
Still, no decision has been taken on whether this currency will be issued. The final resolution is expected to be taken at the end of 2025.
What do you think about Germany and its stance on the digital euro? Tell us in the comments section below.
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