The European Central Bank discovered early in its digital euro work that public acceptance would hinge on one issue above all others: privacy. A large-scale public consultation conducted in 2020 and early 2021 showed that Europeans were broadly open to a digital euro, but only if it offered protections comparable to cash.
The consultation, launched as the ECB entered its investigation phase, attracted more than 8,000 responses from individuals, businesses and institutions across the euro area. When the results were published in April 2021, almost half of the respondents ranked privacy as the most important feature of a potential digital euro, ahead of security, ease of use and accessibility.
For policymakers, the message was unambiguous. At a time when digital payments were expanding rapidly and concerns about data collection by private platforms were intensifying, Europeans wanted assurances that a central bank digital currency would not become a tool for financial surveillance.
Privacy concerns shape early design thinking
ECB officials acknowledged that trust would be decisive. Fabio Panetta, who at the time oversaw the digital euro project, said citizens needed confidence that their everyday payments would remain private. Without that trust, adoption would be unlikely, regardless of technical sophistication.
The consultation also reflected broader European sensitivities around data protection and public oversight. Many respondents explicitly warned against a model that would allow authorities, intermediaries or third parties to monitor individual transactions. These concerns echoed long-standing debates in Europe over the handling of personal data by large technology firms and payment providers.
In response, the ECB began exploring technical options designed to minimise data exposure. One of the most significant was offline functionality, allowing small-value payments to be made without an internet connection and without transaction data being recorded on central servers. Panetta described this approach as “digital cash”, combining electronic convenience with cash-like privacy.
Alongside the ECB’s technical work, the European Commission signalled that any future digital euro legislation would need to comply fully with existing EU data protection law, including the General Data Protection Regulation. The Commission said it was working closely with the ECB to ensure that citizens’ rights would be safeguarded in the legal framework.
Beyond privacy, broader system questions
While privacy dominated the public response, other issues also emerged. Banks and payment providers raised questions about how a digital euro would coexist with existing payment systems and commercial bank deposits. Some economists warned that, without safeguards, large-scale shifts into central bank money could affect financial stability.
These concerns would later feed into debates on holding limits, remuneration and the role of intermediaries, topics that continue to shape legislative negotiations today. However, the 2021 consultation established a clear baseline: public support could not be taken for granted and design choices would need to reflect social expectations, not just technical feasibility.
By the end of the investigation phase, the ECB had gained a clearer understanding of what Europeans expected. There was openness to innovation, but only on the condition that a digital euro preserved the trust, security and anonymity traditionally associated with cash. Those early signals continue to influence the project as it moves from concept toward potential implementation.
Related: ECB Digital Euro User Research Highlights Offline Payments, Lower Fees and Trust as Adoption Drivers