The new form of central bank money, intended to be an alternative to cash rather than a replacement for it, is likely to be introduced in 2029.
While just over half (53.2pc) of people in the eurozone were aware of the digital euro last August, according to a new survey, the figure was 48.9pc for Ireland.
This put the country in eighth place among 11 countries surveyed for the European Central Bank’s Consumer Expectations Survey. Awareness is highest in Austria at 71.4pc.
Irish people are the fourth most willing to try out the digital euro, however.
Trust in the euro and in European institutions is strongly associated with people’s willingness to adopt the new form of currency. With a finding of 26.3pc, just ahead of the euro-area average of 23.1pc, Ireland is showing moderate enthusiasm for the project.
Irish people are usually enthusiastic about trying out new technology, as the relative success of Revolut has shown. The country has one of the highest adoption rates of digital payments in the eurozone, with both households and businesses doing more digital transactions than their European counterparts.
Irish households rank particularly highly for daily usage of banking apps, and for making payments on their mobile phones.
The ECB survey found that men and older people have a higher awareness of the digital euro, and more willingness to adopt it. This is consistent with other findings that men are more likely to experiment with new payment technologies.
There was a slightly lower awareness of the digital euro in the 35 to 49 age cohort, even though it is typically more digital-ready, and uses less cash.
The survey found that the three features of the digital euro most important to Irish people are security, no extra costs, and businesses being willing to accept it.
Across the 11 countries surveyed, Greece had the highest rate of willingness to embrace the digital euro, with 31.6pc of people saying they were likely or very likely to use it in day-to-day transactions. Countries in northern and central Europe – where there is a traditional preference for cash – are showing the greatest scepticism.
The ECB and European Commission are on course to launch a pilot version of the digital euro, in collaboration with banks, next year. First it has to be approved by the European Parliament, which is likely to vote this summer.
In a new blog post on the digital euro, ECB board members Piero Cipollone and Frank Elderson address some of the concerns raised by the banking industry, and insist the project is not a threat to them but should be an opportunity when it comes to retail payments.
“The digital euro is Europe’s best investment in strategic autonomy in payments, monetary sovereignty and societal inclusivity,” they say.
“Banks have a crucial part to play in future-proofing the European payment landscape. That is why the Eurosystem has put them at the heart of the digital euro’s design since the start of the project.”
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