European banks could face implementation costs running into tens of billions of euros to support a digital euro, even as new research from the European Central Bank suggests a sizeable share of households may be open to using it. Together, the two studies underline a growing tension at the heart of the project, consumer demand may exist, but the operational burden on banks remains heavy and politically sensitive.
A PwC study published in June, commissioned by banking industry groups, estimates that euro area retail banks could face around €18 billion in “change costs” to implement a digital euro under current assumptions. In a more demanding scenario, including offline payments and multiple accounts, costs could rise to as much as €30 billion. The figures are based on a survey of 19 banks and extrapolated to the wider euro area.
PwC’s analysis focuses on one core design, an account-based digital euro used for online payments between consumers, businesses, and governments. Even within this limited scope, the study finds that around three-quarters of projected costs sit in the technical layer, including changes to mobile banking apps, payment backends, interfaces with the Eurosystem, and upgrades to ATMs and acceptance infrastructure.
The report also flags a less visible constraint, human resources. Banks estimate that implementing the digital euro would absorb close to half of relevant skilled staff capacity each year over a four-year period. PwC warns this could crowd out other innovation and compliance projects at a time when banks are already under pressure from parallel regulatory and technology programmes.
Consumers show interest, but with caveats
On the demand side, new ECB research paints a more encouraging picture. Using data from the Consumer Expectations Survey, the ECB finds that around 45 percent of households say they might be willing to use a digital euro if it were introduced. Interest is strongest among younger and more digitally literate consumers, while awareness remains uneven across the euro area.
Importantly, the ECB research suggests that most households would treat a digital euro primarily as a means of payment rather than a store of value. This supports the ECB’s long-standing argument that a digital euro would complement cash and bank deposits rather than replace them, especially if holding limits are in place.
However, the ECB also acknowledges uncertainty. Awareness of the digital euro remains limited, and stated willingness to use it does not automatically translate into real-world adoption. Much will depend on design choices, ease of use, privacy safeguards, and how the digital euro is integrated into existing payment experiences.
Why the gap matters now
Taken together, the two studies sharpen the policy dilemma facing European lawmakers and the ECB. While consumer research suggests there is potential demand, banks are warning that the cost and complexity of implementation could be far higher than often assumed, particularly if requirements are not clearly defined.
With negotiations on the digital euro regulation still ongoing, these findings are likely to fuel debates over cost sharing, technical scope, and the role of banks versus central infrastructure. For the ECB, the challenge will be to demonstrate that the public policy benefits of a digital euro justify the private sector investment required to make it work.