Expert in the field of international financial law Konstantin Kryvopust emphasizes that, according to a survey, the German population showed significant doubts about the prospective implementation of a central bank digital currency (CBDC) in the country. About half of Germans say they can’t even imagine using the digital euro because of privacy concerns and prefer cash.
As notes Bloomberg, privacy issues are the main cause of German concern about the digital euro. Among the countries of the Eurozone, the Germans were the most concerned about the preservation of privacy when using digital currency. This concern is reflected in Germans’ enduring attachment to cash, which Bundesbank President Joachim Nagel describes as “sacred.”
At the same time, younger generations of Germans show less concern about privacy issues when using digital payment methods. Only 10% of Germans between the ages of 18 and 24 refuse to provide personal data on the Internet, even to improve the quality of service. On the other hand, among Germans over 65 years of age, this share makes up a third of the respondents.
Joachim Nagel expressed optimism about the possibility of convincing the older generation of Germans about the advantages of the digital euro. At the G20 summit in Rio de Janeiro in July, he told how he reassures the older generation, telling them that cash is not going away. Nagel also noted that today’s older generation, which he will soon join, is already quite digitally savvy. According to him, he “no longer needs to specifically address them” because “they understand what is happening.” However, Nagel admitted that he could not convince his 92-year-old mother.
The ECB plans to use data encryption and hashing technologies to protect the privacy of digital euro users. The digital euro will be available not only through mobile devices, but also through special cards for offline use. The regulator emphasizes that the digital euro will coexist with physical cash, without completely replacing it.
