The Central Bank of Cyprus will present the results of its first quantitative survey on citizens’ level of knowledge and awareness regarding the digital euro on Tuesday in a blog post.
As the survey revealed, the most common payment method in Cyprus is cash; however, the use of credit/debit cards in brick-and-mortar stores on a weekly basis reaches 63%, while the greatest concern among survey participants regarding the use of the digital euro relates to the possibility of their transactions being monitored and the fear of cash being phased out (53%), Of all participants in the CBC survey, 35% state that they are willing to incorporate the use of the digital euro into their daily lives.
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According to the survey results, although cash is the most widely used payment method in Cyprus, the use of credit/debit cards in brick-and-mortar stores on a weekly basis reaches 63%, while 23% make payments or transfer money online or via mobile apps on a weekly basis, with 40% of respondents who make card payments via their mobile phones using this method on a weekly basis, while it was noted that the use of checks is now very limited.
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The survey also showed that the majority of citizens who use cash on a daily basis are people with limited access to digital means, mostly older men with lower levels of education and income, retirees, and the unemployed, while those who prefer to use digital payment methods (online or mobile banking, or mobile payment cards) are mainly women under 45 with a college degree, who belong to the upper or middle social classes and live in urban areas.
It should be noted that the profile of citizens who prefer to use physical cards and cash consists of middle-income women living in urban areas, while the use of checks is observed primarily among older men and businesspeople.
Furthermore, the report indicates that the majority of citizens who participated in the survey had no knowledge at all of the digital euro (61%), while only 1% of respondents said they were fully informed; the largest proportion of citizens who had some knowledge of the digital euro were people under 65, those with a college degree, and employed individuals. The percentage of people who say they have heard of the digital euro consists of men, older adults, from higher socioeconomic strata with a college degree, who live in urban areas, and who are primarily employed in the private sector, self-employed, or hold managerial positions.
Citizens’ sources of information about the digital euro, in order of popularity, are social media (49%) and television programs (30%), while related workshops and seminars are the least popular source of information on the digital euro.
Younger people, people from the middle or lower economic classes, those from rural areas, and employed individuals, while getting information through television programs appears to be more common among older adults, those in lower socioeconomic classes, those with less education, or the unemployed. On the other hand, the upper socioeconomic classes, those with a college education, those living in urban areas who are either business owners, self-employed, or hold managerial positions prefer to get their news from print or online newspapers.
It should be added that, of all participants in the CBC survey, 35% state that they are willing to incorporate the use of the digital euro into their daily lives. The majority of these individuals are under 45 years of age, employed, have a college degree, and belong to a higher economic bracket.
On the other hand, 28% of survey participants consider it somewhat unlikely to very unlikely that they would incorporate the digital euro into their daily lives. Among those who stated their intention to use the digital euro, 40% would use it for online purchases, 41% for in-store purchases, and 33% for person-to-person payments, with 17% unsure about the types of transactions for which they would use the digital euro.
When asked about the differences between the digital euro and current payment methods, only 19% of respondents believe that the digital euro offers a substantially different method for conducting transactions, with the majority of them being men, people under 25, and people who have some knowledge of the digital euro. On the other hand, 56% do not believe that the digital euro will offer anything truly different from other payment methods.
The biggest concern among survey participants regarding the use of the digital euro relates to the possibility of their transactions being monitored and the fear of cash being phased out (53%). Thirty-eight percent appear to be concerned about the security of using the digital euro, and 25% are concerned about how to manage their expenses when using the digital euro.
Regarding the ease of use of the digital euro, only 30% express serious concerns. The participants who expressed serious concerns about the digital euro are, for the most part, women, older adults, people from lower socioeconomic groups, those without a college education, the unemployed, and people who have no knowledge of the digital euro.
Finally, it is noted that among the professionals who participated in the survey (business owners/managers/self-employed individuals), 54% of respondents stated that they would be willing to accept payments in digital euros without any hesitation. Nine percent of respondents stated that the decision to accept payments via the digital euro would depend on cost, ease of implementation, and demand, while 27% stated that they are not willing to accept payments in digital euros.
According to a post on the CBC’s blog, in light of these developments and the ever-growing trend toward digital payment methods, the European Central Bank is developing the digital euro, a digital form of money that will be issued by the ECB and will be available to all citizens within the Eurozone for both online and offline payments. At this stage, work is underway at the European level to establish the legal framework governing the issuance and operation of the digital euro, as well as the technical solution for its implementation, with the goal of its first issuance in 2029.
It should be noted that the survey was conducted between April 21 and 27 via telephone interviews, using a structured questionnaire prepared by the Central Bank of Cyprus’s Directorate General for Payment Supervision. The survey had pan-Cypriot coverage, and 506 interviews were conducted with individuals aged 18 and older.
SOURCE: CNA
