As the European Central Bank prepares key design decisions on a potential digital euro, new research from Austria challenges one of the project’s most persistent assumptions. While privacy dominates political and public debate, consumers appear far more motivated by protection against loss and tangible financial benefits. The findings suggest that practical design choices, not ideological arguments, may ultimately determine whether Europeans actually use a digital euro.
The findings come from a new policy brief published by SUERF, drawing on a large-scale discrete choice experiment conducted by economists at the Oesterreichische Nationalbank. The study tested how around 1,400 Austrian residents respond to different hypothetical designs of a digital euro, asking them to choose between variants with different levels of security, privacy, cost savings, offline functionality, and access method.
Security matters more than anonymity
The most powerful driver of adoption is protection against loss or theft. According to the study, guaranteeing full reimbursement in case a digital euro wallet is compromised increases the likelihood of adoption by 23 percentage points. Even capped protection significantly boosts willingness to use the new currency.
Financial incentives also play a meaningful role. Offering users monthly savings of €10, for example through lower fees or discounts, raises adoption by around eight percentage points. These effects dwarf those associated with stronger privacy guarantees.
By contrast, moving from a model where banks can see transaction data, similar to today’s debit card payments, to full transaction anonymity increases adoption by just one percentage point on average. This gap between stated concern and actual behaviour reflects what economists describe as the privacy paradox.
The averages, however, hide important differences. About one-third of respondents place very high value on privacy and are unwilling to trade it away, even for monetary compensation. For the remaining two thirds, security and financial benefits clearly outweigh privacy concerns.
Cards still matter, offline less so
The study also sheds light on design features that are often assumed to be essential. Offline payments, frequently highlighted as critical for resilience and inclusion, increase adoption only modestly. Similarly, access via a physical card turns out to be more attractive than a smartphone app, particularly in a cash-friendly country like Austria where mobile payment usage remains limited.
When researchers simulated a realistic digital euro design, with no financial incentives, limited privacy, no loss protection, and card-based access, around 45 percent of respondents said they would be willing to use it. In an idealised scenario combining full privacy, incentives, and full protection, that figure rises to 74 percent.
Implications for ECB decisions
For the ECB and EU lawmakers, the message is clear. If the digital euro is meant to be used rather than merely exist, design choices will matter more than slogans. Strong consumer protection, clear safeguards against loss, and visible economic benefits may do more to encourage adoption than pushing privacy to its technical limits.
Trust also plays a decisive role. Respondents who trust the central bank are significantly more likely to adopt a digital euro, underlining the importance of transparent communication as the project moves closer to political decisions.
Austria may be a particularly conservative test case, but the authors argue the lessons are broadly relevant across the euro area. Similar experiments in other countries could help confirm whether these patterns hold elsewhere, but for now the evidence suggests that everyday concerns, not abstract principles, will shape the future of Europe’s digital money.