Richard Turrin’s Post

The European Central Bank digital euro survey found out what you want and the answers will surprise you! Let me start with Surprise No 1️⃣ the biggest of all, privacy was not on top of the list of requested features!  “It is worth noting that many participants among the general public and the tech-savvy reported not thinking about privacy when making payments: there is a general assumption that much of their purchasing is tracked.” I love that answer, it is true, and shows the sad state of digital privacy. The report is long, here’s what to read: Pg 6-10 Exec Summary; Page 29-30 Financial Privacy; Pg 55-57 Unbanked; Pg 64 Preferred features. Here is what YOU want (pg 64):  • Universal acceptance: widely accepted in all kinds of physical shops and online across Europe, for all types of amounts. • Contactless and instant person-to-person payments: no matter what system the recipient is using. • A one-stop solution: integrating multiple payment methods; quick and easy to use; with contactless payments or customisable financial reporting functions. • Safe and secure: biometric verification; protection from fraud and hacking; with authentication of payments. • Cost-efficiency: no cost or low fees. • Financial privacy (digital wallet specific): while financial privacy is not top of mind, when probed, flexible privacy settings that can be adjusted to suit the payment occasion were preferred. • Funding (digital wallet specific): customisable manual funding with payment reminders when the balance of the digital euro wallet is getting low, and an option for automatic top-ups. Surprise No 2️⃣ biometric verification is preferred including fingerprint, face or iris scans. Given the controversy surrounding facial ID, this was a pleasant surprise. Surprise No 3️⃣ the reason people are unbanked is that they distrust banks because they were burned in the past! “Due to a perception that banks charged high fees in return for poor services. Participants had also experienced aggressive marketing practices that alienated them.” I find this sad! People still have no clue what the digital euro is and most spontaneously thought it was a cryptocurrency!  Testimony to Bitcoin’s amazing marketing.  The good news is that most appreciated that the digital euro was ECB backed even if few understood what that central bank money was risk-free. Unsurprisingly, people don't trust BigTech with their money: (pg24) "Big technology companies were generally the least preferred provider. Participants reported not trusting them with personal or financial data and considered large companies less reliable." Many said that they saw no need to give big tech additional information and control. Kudos to the ECB! The digital euro is coming! Thoughts? PS: Did you know the LinkedIn algorithm weighs a 5-word comment equal to 10 likes? Please leave a comment and connect for more on #China's #CBDC, #fintech, #technology, #innovation and my book #CashlessChina