Digital Euro Adoption Depends on Speed and Simplicity

The European Central Bank may succeed in building a secure and resilient digital euro, but its adoption could ultimately depend on something far simpler: whether people find it easier to use than their existing payment methods.

Research from OMFIF and Imperial College London’s Centre for Financial Technology suggests that small frictions in onboarding and payments could sharply reduce usage.

Their agent-based model simulated how consumers might adopt the digital euro across retail, online and person-to-person channels.

The findings set clear benchmarks. Registration should take no longer than 20 minutes, peer-to-peer transfers should take 60 seconds or less, and in-store payments should match the roughly 12 seconds required for a conventional card transaction.

Without that level of convenience, the digital euro risks becoming a wallet that Europeans open once but rarely use again.

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Slow Sign-Ups Could Undermine Digital Euro Adoption

The model identifies onboarding as an early obstacle. If users face a lengthy registration process, many may abandon it before activating their digital euro wallets.

Access through existing banking apps could reduce this problem because banks already possess the information required for know-your-customer and anti-money-laundering checks.

However, those apps may not offer the frictionless person-to-person experience that helped Sweden’s Swish payment service grow.

Users engaged in onboarding for the first 20 minutes. | Credit: Centre for Financial Technology

Swish allows users to send money by selecting a contact or entering a phone number, completing transfers in around 30 seconds.

A digital euro payment requiring a QR code or copied wallet details could take approximately 60 seconds. If users must retrieve multiple bank-account numbers, the process could stretch to two minutes and become less competitive.

Separate ECB research reinforces the challenge. A working paper involving approximately 19,000 households found that explaining the digital euro through a short video temporarily increased willingness to adopt it, but most of the effect disappeared after three months.

Many respondents preferred their established payment methods and showed little interest in learning more. ECB working paper

ECB Features Could Remove Payment Friction

The ECB has already proposed two features that could improve the product’s prospects: automated wallet funding and co-badging.

Under the waterfall mechanism, digital euros exceeding a user’s holding limit would automatically move into a nominated bank account.

The reverse waterfall would draw money from that account whenever the wallet lacks enough funds to complete a payment.

Percentage of P2P payments using the digital euro as transaction times increase. | Credit: Centre for Financial Technology

This would prevent users from having to monitor and manually top up their wallets, an inconvenience the OMFIF model suggests could prove fatal to regular use.

Co-badging would allow consumers to spend digital euros using a physical card or its mobile-wallet equivalent. That could make retail payments as fast as existing card transactions while allowing merchants to accept the digital euro through familiar infrastructure.

Nevertheless, the research suggests peer-to-peer transfers offer the strongest route to adoption.

To succeed, the ECB’s standalone app would need to make sending digital euros as easy as choosing a phone contact.

Critics Question Whether Consumers Need It

The political argument for the digital euro rests heavily on European payment sovereignty. More than 60 economists, including Thomas Piketty, warned that Europe risks becoming increasingly dependent on American companies such as Visa, Mastercard and PayPal without a public digital alternative.

They described the project as an essential safeguard for European resilience.

Financial-sector professionals remain less convinced. A Center for Financial Studies survey reported that 62.3% considered the digital euro unnecessary given the payment methods already available, while roughly two-thirds expected low or very low consumer adoption.

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Respondents also raised concerns about costs, cybersecurity and potential deposit outflows from commercial banks.

The ECB therefore faces a product challenge as much as a monetary one. Strategic autonomy may justify creating the digital euro, but it will not persuade consumers to abandon faster or more familiar options.

For everyday users, success may come down to three questions: Can they register quickly, send money in seconds and pay without thinking about which wallet holds their funds?

If not, Europe’s public digital currency could be technically impressive but commercially irrelevant.

Digital Euro Adoption Hinges on Speed—Can the ECB Make It Easy Enough to Use?

Slow Sign-Ups Could Undermine Digital Euro Adoption

ECB Features Could Remove Payment Friction

Critics Question Whether Consumers Need It

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