Evaluating the Impact of Emerging Technologies on the ECB's Mandate: Can the European Central Bank Use Distributed Ledger Technology and Digital Euro to Advance Financial Inclusion in Europe?

Abstract

There is a noted rise in research examining the influence of digital transformation—specifically the application of Distributed Ledger Technology (DLT) on the progression of the financial sector. This paper presents conclusions from a study on participants' awareness, understanding, and intentions regarding cryptocurrencies and the Digital Euro. Participants have a relatively high awareness of digital assets and Digital Euro, but better understanding is needed through effective communication and educational initiatives. While recognizing cryptocurrencies as valuable investments, participants are skeptical about their use for payments due to concerns about illicit activities. Regulatory frameworks are deemed important to address these concerns. Participants support the introduction of the Digital Euro and intend to use it for various purposes, suggesting potential demand. Desired characteristics include privacy, ease of use, and cross-border usability. These findings inform the strategies for introducing and accepting the Digital Euro, promoting financial inclusion, and enhancing accessibility in Europe's digital economy.

Keywords

• financial inclusion
• european central bank
• distributed ledger technology
• digital euro
• emerging technologies