The European Central Bank (ECB) is developing the digital euro, a retail central bank digital currency (CBDC) aimed at providing a secure and efficient digital payment option. While the ECB prioritizes financial stability through features like holding limits and no remuneration, the success of the digital euro largely depends on consumer adoption. This thesis examines what design choices the ECB can make to enhance consumer adoption of the digital euro.
Using a two-phased approach, design science research was first applied to map the digital euro’s design space, followed by a discrete choice experiment assessing Dutch consumers’ adoption preferences. Findings reveal that holding limits are the most significant factor in adoption, with higher limits increasing appeal. Interest rates and privacy protections also play important roles, while the issuing institution (ECB vs. commercial banks) has little effect.
Results suggest that current design choices may limit adoption, raising concerns about the digital euro’s viability. The study recommends increasing flexibility in holding limits, exploring financial incentives and improving communication on privacy and offline functionality. It also shows how commercial banks influenced the design, leading to restrictive features. This highlights the need for more balanced governance in future policy decisions. The thesis provides recommendations for enhancing the digital euro’s design and adoption potential while highlighting broader implications for designing consumer-facing financial innovations.