EU’s CBDC Gets Record Level Of Public Feedback, Mostly Negative

Key Insights:

• ECB’s public consultation on its CBDC receives over 11K feedbacks, most of it negative.
• German language comments dominate, despite Germany being the most ‘crypto-friendly.’
• Last year, ECB received feedback that clearly stressed payments should remain a ‘private matter.’

Overwhelming negative comments flooded in less than two weeks since the European Commission launched a public consultation on its digital euro initiative.

The feedback section, which opened on April 5, has reportedly received over 11,000 comments. Negative opinion toward the central bank digital currency (CBDC) seems prominent across these feedbacks.

The public feedback portal will be open until June 14.

Per crypto advocate Patrick Hansen, the overwhelming response is “extraordinary high and already more than for the ECB consultation last year.” Last year, the European Central Bank (ECB) launched the first consultation from the EU public on the digital euro, which saw 8.2K responses. 

More than 10k people & companies have already participated in the EU Commission consultation on the Digital Euro (CBDC).

This is extraordinary high and already more than for the ECB consultation last year (~8.2k).

You can participate until June 14.https://t.co/xoITEAiNfm

— Patrick Hansen (@paddi_hansen) April 18, 2022

The first consultation reflected a key priority – EU citizens want payments to “remain private.” Following this, Paolo Gentiloni, the Commissioner for Economy at the EU, stated that “a completely anonymous digital euro is not desirable.”

2/ Last year, the ECB already asked the public about their opinion on a digital euro.

The crystal-clear answer: Payments should remain a private matter. pic.twitter.com/gGaRWdRQRf

— Patrick Hansen (@paddi_hansen) April 7, 2022

German Comments Dominate

Last year, the consultation ended with record-level participation driven by Germans contributing 47%, followed by Italians at 15% and French at 11%, and a clear mandate for maximum privacy, advocate Hansen noted.

Like the first one, the second consultation is also driven by Germans, that appeared quite negative. For instance, an anonymous comment in German stated that digital means of payment already exist. It read,

“So, what is CBDC for? Even more surveillance, prevention of bank runs, addiction, and the consequent enslavement of mankind? This does not prevent money laundering; this already exists on a large scale for the top 10,000 in many tax havens, e.g., the Cayman Islands, Macau, Dubai, etc.”

Most of the comments indicated that the majority of people either don’t really understand the role of the CBDC or distrust the proposal, fearing that it would eliminate cash.

However, ECB has already clarified that “a digital euro would be complementing cash, not replacing it.” It stated,

“Cash will continue to be available in the euro area.”

Some EU citizens expressed that they don’t believe in the bank’s promises and view this as overpowering means of other paper currencies in the EU region. 

Another translated German comment from a user name Michael Hagmüller, read:

“I am against a digital euro for the EU. My concern is that basic freedoms can also be endangered here and authoritarian governments [would] then have total control.”

Some users questioned democracy, stating, “Are we still in a democratic society that you are making such fundamental changes?”

Replying to Hansen’s tweet, a German user questioned the digital euro’s security. He commented, 

“How secure is this CBDC compared to Bitcoin when it comes to extraordinary computing power (e.g., quantum computer). I cannot imagine that the digital euro will offer security in the long term.”

Germans seem skeptical about the stability of a digital euro and the plethora of risks that it would bring to the region and its citizens. It is interesting to note that such comments come at a time when Germany has been identified as the most crypto-friendly country so far in 2022.

Per a report from Coincub, Germany has surpassed Singapore, securing the top spot as the friendliest crypto nation. Crypto exchange Gemini’s “2022 Global State of Crypto” report stated that 43% of high-income Germans already own crypto assets, and over half are “crypto curious.”

FED Is Open for Public Commentary

Meanwhile, the US Federal Reserve has opened up a public commentary column on the discussion of whether and how a CBDC could improve the safe and efficient domestic payments system. 

The US central bank officially announced last week that it is considering a CBDC and haven’t decided on pursuing or implementing a digital dollar. Fed said it is exploring the risks and benefits of a CBDC and is the “right time” to do so.