“The E-Euro should have these features”

After the ECB started a survey on the e-euro of the citizens of the EU, the central bank is now presenting the results.

In October last year, the ECB published its last report on the e-euro. The report should serve as a basis for further evaluations in order to better understand the advantages and challenges of a CBDC in the euro zone. In addition, the paper should also be understood as a first attempt at a conception. Based on this report, the ECB launched the “public survey on the e-euro”. The financial institution put 18 questions to both citizens and professionals and has now received a total of 8,221 responses.

Privacy is the top priority with the e-euro

In a top 5 ranking by the ECB, the majority of those questioned put privacy at the top. According to this, 43 percent stated that this was the most important function that the e-euro had to fulfill. This was followed by the point “security” with 18 percent and the operational capability in the entire EU area (11 percent).

In addition, many citizens saw challenges in the area of ​​accessibility, especially in terms of ease of use. The experts, mostly entrepreneurs, also noted these construction sites and also referred to additional problems that could arise, for example, in regions with weak Internet.

Furthermore, both citizens and experts stated that the e-euro had to be integrated into the existing payment network of banks and payment service providers. Both groups agreed that intermediaries should be monitored and licensed in order to avoid data misuse and security concerns and to ensure consumer protection. Regardless of privacy, both parties supported the need to avoid illegal activities. Less than one in ten respondents advocated complete anonymity.

Possible technical solutions

In addition to the general functions of the E-Euro, the report also looks at the technical solution approaches. A quarter of the private individuals surveyed stated that a hardware solution (in the form of “smart cards”) or a security element, for example in a smartphone, would represent the best technical solution.

About a third of the experts, on the other hand, did not rule out a software solution, such as the use of a wallet or app. However, they were also open to hardware solutions. Another third of professionals preferred a combination of end-user solutions with back-end infrastructure, with many referring to decentralized infrastructures.

No function limitation for payments outside the EU zone

When asked about cross-currency payments, many citizens placed value on the speed of cross-border transactions, as well as the costs and transparency of exchange rates. A third of the respondents mentioned at least one of these three aspects. In addition, some noted that instant transfers should also be made possible.

In addition, the majority also spoke out in favor of using the e-euro outside the currency zone. The functions of the CBDC should not be limited. The prerequisite for this, however, is the guarantee of privacy and security. Around 10 percent of those surveyed were in favor of restricting the functions of the e-euro when used for transactions outside the euro zone. Another 10 percent completely refused international payments.

“It could be another four years before the e-euro”

The ECB concludes from the report that the majority of respondents would be positive about the introduction of an e-euro. The Eurosystem’s promise to citizens not to abolish cash or cut interest rates is also crucial. Even if the survey was not representative, it would have provided the central bank with valuable information. The ECB could build on this and now begin a few experiments to sound out the strengths and weaknesses of individual solutions.

Ultimately, however, the report indicated that the analysis was not intended to anticipate decisions. The financial institution would be free to conduct further research and to seek communication with the public and its stakeholders. How long the evaluation and tests with regard to the E-Euro will take is currently still unclear. Most recently, ECB boss Christine Lagarde had already indicated that “realistically” another four years could pass before the introduction of the CBDC.