The Bank of Spain has been exploring the possibility of adopting a digital euro.
If you're unaware, the digital Euro is a central bank digital currency (or CBDC for short).
CBDCs are actually no different from regular crypto like USDT or USDC. The only difference is that it is issued by governments, is largely centralized, and is completely under the control of said government.
In this case, a digital Euro is a CBDC that will be issued by the European Central Bank (ECB).
However, there might be a few signs that a digital Euro may be a bad idea.
A recent survey conducted by the Bank of Spain shows that the majority of Spaniards may not even be interested in using or owning the digital euro.
Here are the details
The survey, titled "Study on the habits in use of cash," was carried out by Ipsos on two groups of 1,600 respondents:
These respondents comprised of
According to details and results of the study, the results revealed that only 20% of the general public and 23% of the small business owners were even "aware" of the concept of a "digital euro".
Only 20% of the respondents said they would ever use the digital euro to complement their regular payment methods, while a whopping 65% said they would not even consider it.
This shows a decline in the acceptance of the CBDC compared to a similar study in 2022 when 58% of the respondents rejected the idea of using the digital euro.
The survey also found that the younger age groups were more open to using the digital euro than the older ones.
According to the study's results, among those aged 18-24, 36% said they would use the CBDC, while only 7% of those aged over 65 said the same.
In all, the amount of acceptance gradually decreased with age.
The Bank of Spain has been actively participating in the European Central Bank's work on the digital currency, which is still in development.
The bank also published a report in October, explaining the nature and uses of the digital currency.
The European Central Bank also claims that the digital Euro would offer several benefits for the economy and society.
According to the bank, the CBDC will be a legal tender that would coexist with the regular euro and other forms of money.
Even more, it would be accessible to all citizens and businesses and would allow them to make payments in a fast, secure, and cheap way.
The digital euro is also expected to enhance financial inclusion, innovation, and competition in the payment market. In all, it will also make electronic payments a vital piece of the financial system.
Spain has also recently shown its support for the EU's efforts to create a unified and regulated digital economy.
The country has decided to implement the Markets in Crypto Assets (also known as MiCA).
MiCA is a European crypto framework that aims to provide legal clarity and protection for consumers when it comes to crypto assets.
The MiCA regulation is expected to reach full implementation in 2024. However, Spain has announced that it will adopt it six months earlier than required.
This move demonstrates Spain's willingness to embrace innovation and foster growth in the crypto sector.
However, the lethargy the Spaniards have shown to the digital euro leaves an open question as to whether Spain's population will share this enthusiasm for CBDCs.
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