A survey of compliance specialists in the Irish financial services
sector found that seven out of 10 fear the digital euro will lead to
more scams and technical glitches. There are also worries that an
electronic currency will diminish the role of cash.
Compliance officers are responsible for ensuring all corporate processes
and procedures in companies comply with the law.
A majority of the officers polled by the Compliance Institute do not
believe there is a need for the digital euro.
The Compliance Institute polled 175 professionals working primarily in
Irish financial services organisations nationwide. The survey examined
attitudes towards the digital euro, which has been described by the
European Central Bank (ECB) "as an electronic form of cash for the
digitalised world".
The ECB started preparatory work on the digital currency last November,
with the earliest possible launch date recently mooted as 2026.
Privacy fears around the currency also rank highly on the list of
worries. More than half of respondents are concerned there could be
issues around data protection if the digital euro is introduced.
However, around half of the respondents accepted that the new digital
currency may bring benefits such as lower banking costs and lead to
greater convenience and efficiencies in transactions.
Chief executive of the Compliance Institute Michael Kavanagh said: "Just
6pc of respondents said they have no concerns about the digital euro -
which means that the remaining 94pc feel some level of unease about the
planned new currency.
"It would seem that the ECB has much work to do to allay fears around it
ahead of any launch."
The top concerns for compliance professionals about the digital currency
include fears that consumers would be at the mercy of technology and
could be unable to access their money in the event of a glitch.
There are also worries that the digital nature of the planned currency
makes it susceptible to hackers, fraudsters and cyberattacks. Compliance
officers identified the potential for consumer confusion, with a
possible lack of knowledge on how to use the digital currency.
Mr Kavanagh said: "The thinking behind the digital euro is that it would
give consumers the option to use central bank money in a digital format,
complementing banknotes and coins.
"However, our survey found that there are concerns that the rollout of
the currency could in time lead to less availability of cash."
Almost half of those surveyed were worried that the digital euro could
give more power to tech and fintech companies.
Public Expenditure Minister Paschal Donohoe said recently that agreement
on the rollout of a digital euro was still some years away. However, he
said it would be critical to ensuring the euro currency remains relevant
in the years ahead. He was speaking in his capacity as president of the
Eurogroup of finance ministers.
Irish Independent
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