Cypriots are approaching the digital euro with a significant lack of awareness, but also with a noticeable willingness to adopt it, according to the findings of a survey conducted by the Central Bank of Cyprus (CBC).
The survey captures citizens' knowledge, perceptions and intentions regarding a new payment method currently being designed at European level and expected to be issued for the first time in 2029.
The findings were presented in a new post on The CBC Blog titled From Knowledge to Use: What the Survey Shows About the Digital Euro, authored by Maria Kontou and reviewed and finalised by Stelios Giorgakis, Director General of the CBC's Directorate General of Payment Supervision.
The survey was conducted between 21 and 27 April through telephone interviews using a structured questionnaire prepared by the Directorate General of Payment Supervision.
It covered all of Cyprus and included 506 people aged 18 and over.
Cash still on top
Despite the rapid spread of digital payments, cash remains the most widely used payment method in Cyprus.
At the same time, however, cards have established a strong presence in everyday life.
Some 63% of respondents use a credit or debit card in physical stores on a weekly basis, while 23% make weekly payments or money transfers through the internet or mobile applications.
In addition, 40% of those who use cards through mobile devices do so at least once a week.
The survey nevertheless records significant differences across social and demographic groups.
Daily cash use is more commonly associated with older individuals, people with limited access to digital technologies, those with lower educational and economic status, as well as pensioners and unemployed persons.
By contrast, digital payment methods are preferred mainly by younger women, individuals with tertiary education and those with a middle or higher socio-economic profile.
Major information gap
The most striking finding concerns the level of knowledge about the digital euro.
Some 61% of respondents stated that they have no knowledge whatsoever of the new digital payment instrument, while only 1% consider themselves fully informed.
Higher awareness levels are found primarily among people under 65, employees and citizens with tertiary education.
Among those who have heard about the digital euro, the main source of information is social media, cited by 49%, followed by television programmes at 30%.
Conferences and seminars emerge as the least popular source of information.
35% view usage positively
Despite the low level of awareness, 35% of participants said they would be willing to incorporate the digital euro into their daily lives.
This group consists mainly of people under 45, employees, citizens with tertiary education and those with higher income levels.
On the other hand, 28% consider it somewhat to very unlikely that they would use it.
Among those expressing an intention to use the digital euro:
- 41% would use it for purchases in physical stores.
- 40% would use it for online shopping.
- 33% would use it for person-to-person payments.
Perhaps the survey finding that highlights the greatest communication challenge is that 56% do not believe the digital euro will offer anything substantially different from existing payment methods.
Only 19% believe it would significantly change the way transactions are carried out.
Fears over privacy and cash
Distrust remains a significant obstacle to adoption.
Some 53% cite as their main concern the possibility of their transactions being monitored, as well as fears that the digital euro could lead to the elimination of cash.
Meanwhile:
- 38% are concerned about the security of using it.
- 25% are concerned about managing their expenses through the digital euro.
The strongest concerns are recorded mainly among women, elderly people, individuals with lower income levels, citizens without tertiary education, unemployed people and those with no knowledge of the digital euro.
Businesses more positive
A more positive picture emerges in the business community.
Among business owners, managers and self-employed individuals, 54% say they would accept payments in digital euro without hesitation.
A further 9% said their decision would depend on the cost, ease of implementation and customer demand.
Meanwhile, 27% said they would not be willing to accept such payments.
The digital euro is still under development, as both the legal framework and the technical solution for its implementation continue to be worked on at European level.
The first issuance is targeted for 2029.
The CBC survey therefore suggests that, until then, the challenge is not only technological.
It is above all a matter of information, trust and understanding exactly what will change in the everyday payment habits of citizens.
