Concern over vulnerability of ‘digital euro’
A survey by the Compliance Institute has found that more than seven in 10 (73%) compliance experts in the Irish financial services sector are concerned that the planned digital euro could leave consumers and businesses vulnerable to cybercriminals and technical glitches, while more than six in 10 (63%) compliance experts in the financial sector don’t believe there is a need for a digital euro.
The poll examined attitudes towards the digital euro, which has been described by the European Central Bank (ECB) “as an electronic form of cash for the digitalised world”. The ECB started preparatory work on the digital currency in November 2023 with the earliest possible launch date recently mooted as 2026.
Privacy fears around the currency also rank highly in the list of potential cons, with more than half (51%) concerned about data protection and privacy if the digital euro is introduced. However, approximately the same number of respondents accepted that the new digi currency may well bring benefits such as lowering the cost of banking and leading to greater convenience and efficiencies in transactions.
Michael Kavanagh, CEO of the Compliance Institute, said: “Just 6% of respondents said they have no concerns about the digital euro – which mean that the remaining 94% feel some level of unease about the planned new currency. It would seem that the ECB has much work to do to allay fears around it ahead of any launch.
“The thinking behind the digital euro is that it would give consumers the option to use central bank money in a digital format, complementing banknotes and coins – however, our survey found that there are concerns that the rollout of the currency could in time lead to less availability of cash. There are also clearly fears that consumers could be at a financial loss with this digital currency, particularly in relation to accessing their money in the event of a technical glitch – and potentially falling prey to fraudsters. Interestingly, almost half (47%) of those surveyed were worried that the digital euro could give more power to tech and fintech companies.”
Kavanagh added: “The ECB has said that the digital euro would make people’s lives easier by providing a digital means of payment universally accepted throughout the euro area, for payments in shops, online or from person to person. However, with a ream of avenues already in place for electronic and digital payments, including contactless mobile phone payments and electronic bank payments, it is understandable that so many compliance professionals believe the digital euro is already redundant.
“This, combined with the extent of concerns around the digital euro, shows that the ECB has a job ahead of itself in convincing the Irish and wider European public that this is a safe, inclusive and easy-to-use currency.”
TechCentral Reporters
Subscribers 0
Fans 0
Followers 0
Followers