Cyprus survey finds limited awareness and cautious interest in digital euro

Nicosia, Cyprus. Most people in Cyprus know little about the digital euro, and fewer than four in ten say they are ready to use it, with concerns over transaction monitoring and the future of cash dominating public sentiment.

Maria Kontou, writing in a Central Bank of Cyprus blog, said 61 per cent of those surveyed had no knowledge of the digital euro, while only 1 per cent considered themselves fully informed.

Digital payments and the project

Kontou said digital payments had developed rapidly over the past decade globally, across Europe and in Cyprus, with everyday transactions increasingly conducted through electronic wallets and mobile applications, both online and in physical shops.

She said the European Central Bank was developing the digital euro as a digital form of money to be issued by the ECB and made available to everyone in the euro area for payments with and without an internet connection.

Work is continuing on the legal framework for its issuance and operation, as well as the technical system needed for its introduction. Its first launch is currently targeted for 2029, Kontou said.

Survey findings

The Central Bank of Cyprus conducted its first quantitative survey on public awareness of the digital euro between April 21 and 27 through telephone interviews.

The study used a structured questionnaire prepared by the CBC’s Payments Supervision Directorate, covered the whole of Cyprus and included 506 people aged 18 and above.

Payment habits

Cash remains the island’s most widely used payment method, Kontou said. However, 63 per cent of respondents used credit and debit cards in physical shops every week.

A further 23 per cent made online payments and money transfers through internet banking and mobile applications weekly. Among respondents who paid by card through their mobile phones, 40 per cent used the method every week.

Kontou said cheque use had become very limited.

Cash use across the euro area

The continued preference for cash is not unique to Cyprus. Referring to the ECB’s 2024 study on consumer payment attitudes, Kontou said cash accounted for 52 per cent of small payments in physical shops across the euro area and remained widely used for payments between individuals.