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Europeans show little interest in digital euro, ECB study reveals

European consumers have shown minimal interest in adopting a central bank digital currency (CBDC), raising concerns for the European Central Bank (ECB) as it prepares for a potential rollout of the digital euro.

An ECB working paper on “Consumer attitudes towards a central bank digital currency,” which surveyed about 19,000 respondents across 11 euro-area countries, highlighted significant communication challenges that are discouraging European households from adopting the digital euro. 

When asked to hypothetically allocate 10,000 euros (roughly $10,800) across various assets, Europeans allocated only a small portion to the digital euro, having little impact on traditional liquid assets like cash, current accounts or savings accounts.

Europeans show little interest in digital euro, ECB study reveals

Reasons for not adopting a digital euro for retail payments. Source: European Central Bank

According to the March 12 ECB working paper, Europeans have a strong preference for existing payment methods and see no real benefit in a new type of payment system amid myriads of offline and online alternatives:

“This finding also suggests that convincing some users of the value added of a CBDC might pose a challenge for policymakers, and more research will certainly be needed in this area.”

The study suggested that while a digital euro could be introduced with minimal disruption to financial stability, its adoption faces significant hurdles due to consumer habits. 

Additionally, it stressed the importance of targeted communication to address persistent consumer reluctance toward a digital euro.

Europeans show little interest in digital euro, ECB study reveals

Post-treatment attention checks conducted on European respondents. Source: ECB

The ECB paper found that European consumers were receptive to video-based education and training and concluded that educating the masses with CBDC-related video information could help with the widespread adoption of the digital euro:

“We find evidence that consumers who are shown a short video providing concise and clear communication about the key features of the digital euro are substantially more likely to update their beliefs about this new form of payment, which, in turn, increases their immediate likelihood of adopting it compared to an untreated control group.”

Related: European lawmakers silent on US Bitcoin reserve amid digital euro push

The study’s release comes as US lawmakers intensify their opposition to CBDCs. Speaking at the House Financial Services Committee hearing on March 11, Representative Tom Emmer said Congress should “prioritize pro-stablecoin legislation alongside anti-CBDC legislation.”

Europeans show little interest in digital euro, ECB study reveals

Emmer speaks during the House Financial Services Committee Hearing on CBDCs. Source: emmer.house.gov

Emmer said, “CBDC technology is inherently un-American” and unelected officials should not be allowed to issue it. Emmer also reintroduced the CBDC Anti-Surveillance State Act, which would prevent future US administrations from launching CBDCs.

Meanwhile, Deutsche Börse CEO Stephan Leithner recently called for the establishment of a permanent digital euro, among other reforms, to strengthen the region’s financial autonomy.

Magazine: Crypto fans are obsessed with longevity and biohacking: Here’s why

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Labour deputy leadership candidate accuses opponent’s team of ‘throwing mud’ and briefing against her

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Labour deputy leadership candidate accuses opponent's team of 'throwing mud' and briefing against her

Lucy Powell has accused Bridget Phillipson’s team of “throwing mud” and briefing against her in the Labour deputy leadership race in a special episode of Sky’s Electoral Dysfunction podcast.

With just days to go until the race is decided, Sky News’ political editor Beth Rigby spoke to the two leadership rivals about allegations of leaks, questions of party unity and their political vision.

Ms Powell told Electoral Dysfunction that through the course of the contest, she had “never leaked or briefed”.

But she said of negative stories about her in the media: “I think some of these things have also come from my opponent’s team as well. And I think they need calling out.

“We are two strong women standing in this contest. We’ve both got different things to bring to the job. I’m not going to get into the business of smearing and briefing against Bridget.

“Having us airing our dirty washing, throwing mud – both in this campaign or indeed after this if I get elected as deputy leader – that is not the game that I’m in.”

Ms Powell was responding to a “Labour source” who told the New Statesman last week: “Lucy was sacked from cabinet because she couldn’t be trusted not to brief or leak.”

Ms Powell said she had spoken directly to Ms Phillipson about allegations of briefings “a little bit”.

Bridget Phillipson (l) and Lucy Powell (r) spoke to Sky News' Beth Rigby in a special Electoral Dysfunction double-header. Pics: Reuters
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Bridget Phillipson (l) and Lucy Powell (r) spoke to Sky News’ Beth Rigby in a special Electoral Dysfunction double-header. Pics: Reuters

Phillipson denies leaks

But asked separately if her team had briefed against Ms Powell, Ms Phillipson told Rigby: “Not to my knowledge.”

And Ms Phillipson said she had not spoken “directly” to her opponent about the claims of negative briefings, despite Ms Powell saying the pair had talked about it.

“I don’t know if there’s been any discussion between the teams,” she added.

On the race itself, the education secretary said it would be “destabilising” if Ms Powell is elected, as she is no longer in the cabinet.

“I think there is a risk that comes of airing too much disagreement in public at a time when we need to focus on taking the fight to our opponents.

“I know Lucy would reject that, but I think that is for me a key choice that members are facing.”

She added: “It’s about the principle of having that rule outside of government that risks being the problem. I think I’ll be able to get more done in government.”

👉 Click here to listen to Electoral Dysfunction on your podcast app 👈

Insider vs outsider

But Ms Powell, who was recently sacked by Sir Keir Starmer as leader of the Commons, said she could “provide a stronger, more independent voice”.

“The party is withering on the vine at the same time, and people have got big jobs in government to do.

“Politics is moving really, really fast. Government is very, very slow. And I think having a full-time political deputy leader right now is the political injection we need.”

The result of the contest will be announced on Saturday 25 October.

The deputy leader has the potential to be a powerful and influential figure as the link between members and the parliamentary Labour Party, and will have a key role in election campaigns. They can’t be sacked by Sir Keir as they have their own mandate.

The contest was triggered by the resignation of Angela Rayner following a row over her tax affairs. She was also the deputy prime minister but this position was filled by David Lammy in a wider cabinet reshuffle.

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UK tax authority doubles crypto warning letters in crackdown on unpaid gains

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UK tax authority doubles crypto warning letters in crackdown on unpaid gains

UK tax authority doubles crypto warning letters in crackdown on unpaid gains

HMRC sent nearly 65,000 warning letters to crypto investors last year, more than double the previous year, as the UK steps up efforts to trace undeclared capital gains.

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‘Additional resources’ offered by govt to reverse ban on Maccabi Tel Aviv fans at Villa game

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'Additional resources' offered by govt to reverse ban on Maccabi Tel Aviv fans at Villa game

The government says it is exploring what “additional resources and support are required” to allow “all fans” to attend Maccabi Tel Aviv’s match against Aston Villa next month.

Supporters of the Israeli side have been told they are not allowed to attend November’s game in Birmingham after a decision by Birmingham’s Safety Advisory Group (SAG).

The group – made up of local stakeholders, including representatives from the council, police and event organisers – said the decision was due to a high risk of violence based on “current intelligence and previous incidents”.

Politics live: MPs react to Maccabi Tel Aviv fan ban

The decision has been criticised across the political spectrum, with Sir Keir Starmer describing it as a “wrong decision” while Tory opposition leader Kemi Badenoch called it a “national disgrace”.

In a statement on Friday night, a government spokesperson said: “No one should be stopped from watching a football game simply because of who they are.

“The government is working with policing and other partners to do everything in our power to ensure this game can safely go ahead, with all fans present.

“We are exploring what additional resources and support are required so all fans can attend.”

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Birmingham residents react to the Maccabi fan ban

Meanwhile, Home Secretary Shabana Mahmood said: “Antisemitism is a stain on our society that shames us all. Every football fan, whoever they are, should be able to watch their team in safety.

“This government is doing everything in our power to ensure all fans can safely attend the game.”

The prime minister’s spokesman previously said Sir Keir would “do everything in his power to give Jewish communities the security they deserve”.

Read more:
Why are fans banned – and has this happened before?
How this raises questions about one of the UK’s biggest cities

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Badenoch: Fan ban a ‘national disgrace’

The Home Office offered to provide more police for the event, while Culture Secretary Lisa Nandy and Communities Secretary Steve Reed also intervened.

However, senior police insisted the ban was necessary and cited clashes and hate crime offences committed when the Israeli team travelled to Amsterdam to play Ajax last year.

The Aston Villa vs Maccabi Tel Aviv match – set to take place on Thursday 6 November – is a Europa League fixture.

UEFA, which runs the tournament, had urged UK authorities to ensure away fans could attend.

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