Bank of Spain Report Reveals Spaniards’ Hesitation Towards Digital Euro

The Bank of Spain recently performed a study on Spanish payment preferences, which has shown the reluctance of many Spaniards to embrace the planned digital euro, or central bank digital currency (CBDC) for Europe. In order to examine the evolution of cash usage in Spain, the research polled 1,606 members of the general public as well as 1,616 affiliates of small businesses and hospitality services.

Remarkably, the study shows that 65% of Spaniards still rely on actual currency for everyday transactions, making cash the most common method of payment for the country’s citizens. Next in line are credit and debit cards; payment applications and electronic transactions are still comparatively less common, despite rise from the previous year.

Cash remains the most common form of payment for the people of Spain, even with the legal restriction of 1,000 euros on cash payments and the reduction of ATMs brought about by the Antifraud law of 2021.

Digital Euro Awareness and Reluctance

According to the poll, just 20% of the general public had heard of the possible introduction of the digital euro, indicating that knowledge of it is comparatively low among Spanish citizens.

There is a noticeable hesitation to accept the digital euro, even among people who are aware of it. The digital euro was rejected by an overwhelming 65% of respondents, who said they were happy with the current payment options.

It’s intriguing to see, nevertheless, that attitudes on the digital euro change with advancing age. With 34% showing interest, younger users, those between the ages of 18 and 24, are more receptive to integrating it into their payment methods. However, the digital euro is only accepted by 7% of users who are over 65.

The project has moved into its planning stage even though the European Union (EU) has not yet taken a definitive decision regarding the issuing of the digital euro. The goal of this phase is to choose possible suppliers for the infrastructure and platform development of the digital euro as well as to finalize the digital euro regulation.