Consumers give opinion on digital euro

As Europe moves forward with plans to create a digital version of the euro currency, a recent survey by the European Consumer Organisation, or BEUC, found that most Europeans want a digital euro to be secure, easy to use, and free of charge.

The poll of 10,000 consumers across 10 eurozone countries revealed 86 percent worry about fraud protection, while 87 percent said paying digitally should be free.

"A digital euro will be attractive to consumers if it is easy to use, including for those currently struggling with digital payments, if it provides a strong protection against fraud, including good refund rights, and if basic services such as a payment card is offered for free," said Agustin Reyna, the BEUC's director general.

The digital euro would function as electronic cash and reduce European Union dependence on United States-based payment providers, such as Visa and Mastercard, reported Euronews.

Most eurozone countries currently rely on international payment providers, with only seven operating national card systems.

The European Central Bank would be responsible for issuing and managing the digital euro, similar to how it currently handles physical euro banknotes. The ECB would oversee the currency's technical infrastructure, security protocols, and distribution system through participating banks.

EU finance ministers recently agreed on implementation steps, including oversight of the currency's issuance and holding limits.

The Eurogroup body, which brings together finance ministers from all euro-using countries to coordinate economic policies, will play a key role in the digital euro's future.

"An important element of the compromise that we reached is that before the ECB makes a final decision in relation to issuance, there would be an opportunity for a discussion of council of ministers in relation to how the project will move forward," Eurogroup President Paschal Donohoe told reporters in Copenhagen.

Legislation for the digital euro was first proposed by the European Commission in June 2023 and now awaits approval from EU governing bodies. If adopted, the ECB would then decide whether to go ahead with the plan, and a two-and-a-half-year preparatory phase could begin.

"The digital euro is not just a means of payment, it is also a political statement concerning the sovereignty of Europe and its capacity to handle the payment, including on a cross-border basis, with a European infrastructure and solution," ECB President Christine Lagarde said at a news briefing in Copenhagen. "This (compromise) was a good step in the direction that we hope will be completed in as short order as possible."

The ECB expects a possible launch by mid-2029, according to board member Piero Cipollone.