BearingPoint Ireland’s Martin Deere discusses the digital euro in relation to Irish consumers and how the currency is designed to ‘complement, not replace, cash’.
Nearly a quarter (24pc) of Irish consumers are prepared to adopt the digital euro once it’s introduced, according to a recent study conducted by BearingPoint.
The latest BearingPoint European Payment Study, which surveyed more than 10,000 consumers across nine countries including Ireland, showed that Irish consumers – along with the rest of Europe – were becoming more aware of the digital euro initiative, as well as more enthusiastic about using the digital currency.
48pc of Irish respondents cited online shopping as their primary use for the digital euro, exceeding the European average of 37pc.
But what exactly is the digital euro?
The digital euro is a proposed central bank digital currency (CBDC) being developed by the European Central Bank (ECB). First proposed in 2023, the initiative is currently in the middle of a two-year preparatory phase as the ECB lays the groundwork for its introduction.
“Unlike cryptocurrencies, it would be issued and regulated by the ECB, ensuring stability, security and public trust,” says Martin Deere.
Deere is head of finance and risk at BearingPoint Ireland, and he says the digital euro is designed as a “digital complement to cash”.
“This initiative aims to modernise the financial system and provide a resilient, publicly backed digital payment option.”
Martin Deere. Image: Mark Colfer
Security
One of the core considerations of the digital euro initiative is security. A key talking point of the currency is its allowance of offline transactions, which Deere describes as having “cash-like” levels of privacy, ensuring that only the payer and recipient know the details without requiring an internet connection.
As for digital euro online payments, Deere says that the euro system cannot directly link users to transactions.
“This is particularly important in Ireland, where privacy and data protection remain key concerns, with 38pc of the population reporting these issues when using digital payment methods,” he says.
“Only necessary personal data would be accessible to intermediaries such as banks to comply with EU anti-money laundering and counter-terrorism financing laws. Governance by EU regulations and supervision by independent data protection authorities should ensure compliance with Europe’s stringent privacy and security laws.
“As a publicly backed alternative to private digital payment systems, the digital euro would complement commercial banks and Big Tech payment providers while enhancing payment resilience in crisis situations.”
Cash out?
But while some may be excited at the prospect of a European CBDC, some fear that the digital euro could eventually replace physical cash. This is particularly evident in countries such as Ireland and Germany, where cash remains a widely used and trusted payment method.
However, Deere says that replacing cash is not the objective.
“The digital euro is designed to complement, not replace, cash – offering an additional secure and cost-free payment option,” he says.
Interestingly, the BearingPoint survey found that countries with high cash usage would be more likely to use the digital euro frequently. which Deere says is because of the small but gradual decline in cash usage over the past few years. (According to BearingPoint, cash usage among Irish consumers dropped from 61pc to 59pc between 2023 and 2024).
“While cash remains an important payment method in Ireland, digital transactions are already deeply integrated into everyday life,” Deere says. “The survey found that 35pc of Irish consumers frequently use mobile payment services, up 4pc from the previous year, highlighting a growing preference for digital alternatives.”
In Ireland, Revolut remains the most popular method for peer-to-peer transactions, with usage increasing from 55pc in 2023 to 59pc in 2024 according to BearingPoint figures.
What’s the cost?
In the event of a digital euro adoption in Ireland, Deere says a number of measures will be needed.
Banks and payment providers would need to update their systems to support digital euro transactions, and ensuring that retail businesses have access to digital euro-compatible payment terminals would be “essential”.
In addition, efforts to spread awareness of the currency would be vital.
“To successfully integrate the digital euro into Ireland’s financial ecosystem, targeted initiatives should inform consumers and businesses about its benefits and functionality,” explains Deere. “While awareness has grown by 3pc from 2023 to 2024, 37pc of people in Ireland remain unaware of it, underscoring the need for further outreach.”
However, being aware of the digital euro is only half the battle; people will also need to be able to access the currency easily.
“Developing user-friendly digital wallets compatible with various devices will ensure ease of use, particularly for those less familiar with digital technologies,” says Deere. “Partnering with commercial banks and payment providers will be essential for integrating the digital euro into Ireland’s existing financial systems.”
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