Privacy is most important

When the digital euro arrives, what is most important to consumers and experts? The ECB asked citizens and associations, but also experts, about this. The clear answer: data protection.

The protection of privacy when a digital currency is introduced by the European Central Bank is a top priority for consumers and professionals. That was the result of a survey by the ECB. The monetary authorities are considering introducing the much-discussed digital version of the euro in the coming years. Data protection is right at the top of the wish lists of citizens and experts. 43 percent of around 8,200 respondents named the protection of privacy as the most important concern. This is followed by security (18 percent), the option of processing payments in the entire currency area (eleven percent), the cost factor (nine percent) and the option of offline use independently of the Internet (eight percent).

Interviewed private individuals and experts

The results of the survey were published by the ECB in Frankfurt on Wednesday. 94 percent of the respondents were private individuals, the remaining participants were experts from sectors such as banks, including payment service providers, merchants and technology companies. Almost half of the answers came from Germany, 15 percent from Italy and 11 percent from France. “A digital euro can only be successful if it meets the needs of Europeans,” said ECB Director Fabio Panetta about the results. “We will do our best to ensure that a digital euro meets the expectations of citizens highlighted in the public consultation.”

Virtual wallet for quick payments

The digital euro should be kept in a kind of virtual wallet. In the case of purchases, for example, the money will be transferred to the seller’s cash register using a simple process, for example an app or a QR code. This should be possible both online and offline, without the Internet, for example through Bluetooth or other technical solutions. E-Euros should be able to be booked on a separate account, i.e. separately from the deposits on a normal current account. In fact, this account is supposed to be held by the ECB, but managed by the commercial banks. As with cash and book money, the normal consumer will not have direct access to the ECB.

Data protection versus illegal activities

Most of the respondents in the ECB survey support requirements to avoid illegal activities. Far fewer respondents value complete anonymity. In their opinion, new, innovative services should be integrated into existing banking and payment systems. Around a quarter of those surveyed want a digital euro to make cross-border payments faster and cheaper. The digital euro should also – with restrictions – also be usable outside the euro area. The ECB survey was conducted from mid-October to mid-January. It is part of the central bank’s deliberations on introducing a digital version of the euro. The background to this is the rapid rise of other digital currencies such as Bitcoin or Ether. In contrast to such private-sector cryptocurrencies, a digital euro would be issued by the ECB. The central bank wants to decide in mid-2021 whether the project should be pursued further.