Results from ECB focus groups indicate that the public is more likely to embrace a digital euro that physical and online stores accept, and that allows for easy person-to-person payments.
Fabio Panetta, a member of the Executive Committee of the European Central Bank, said that discussion groups exploring the possible deployment of a digital euro hinted that the ability to use the digital currency in physical stores and online could be a key feature.
In a written statement published on Wednesday, Panetta outlined the conclusions of the ECB’s focus groups on digital payment methods commissioned in September 2021, which suggested that people were more likely to accept a digital euro than one accepted in physical and online shops, and that would allow easy person-to-person payments. According to Panetta, all businesses would have to accept a digital euro to see adoption trends like those experienced by the fiat euro 20 years ago.
Panetta Explains
“The introduction of euro notes made it possible to pay with physical euros anywhere in the Eurozone,” Panetta said. “So it’s no wonder people expect to be able to use the digital add-on to tickets anywhere they can pay digitally or online.”
On Twitter, the ECB posted that, “A digital euro can only be successful if it meets the payment needs of Europeans, says Executive Board member Fabio Panetta. Focus groups have provided us with key input for the project.”
The results of the focus groups also indicated that many citizens and merchants were not familiar with the digital euro and feared that cash would disappear, as the number of use cases for this technology increased. However, once they understand the concept, members of the general public focus group said that the most desirable feature for a digital euro was that it be “widely accepted in all types of physical and online stores”, while traders suggested high demand would be its biggest driver.
Panetta added that the ECB would consider these features along with privacy concerns in response to a public consultation the central bank conducted between October 2020 and January 2021. He said the ECB would hold another round of focus groups including the digital euro by the end of 2022, providing useful data to determine relevant policies.
Panetta further explained that, “We are getting a clearer picture of what citizens and merchants want, so that we can fine-tune all the design features of a digital euro before any possible issuance. In addition, the co-legislators have a key role to play, for example in enabling a more privacy.”
CBDC: ECB and Other Countries
The European Central Bank has been exploring the development of a digital euro, as interest in central bank digital currencies appears to be growing around the world. The Central Bank of the Bahamas was the first nation to launch a CBDC in October 2020. China began testing its digital yuan in 2020, subsequently making it available to international athletes at the Beijing Winter Olympics in February.
By Audy Castaneda
