Central Bank of Latvia highlights mixed public appetite for the digital euro as survey shows 26% intend to use it

The Central Bank of Latvia published an overview of the Eurosystem’s digital euro project, framing it as a response to the euro area’s reliance on a small number of non-European card payment providers and as a way to strengthen competition and resilience in digital payments. The update also reports mixed public sentiment in Latvia, with a February 2025 survey finding that 26% of respondents intend to use a digital euro, 32% are undecided, and 42% would not use it. The article points to rising card usage and limited domestic alternatives across the euro area, and links these dynamics to higher costs for merchants, noting that merchant fees for accepting card payments doubled between 2018 and 2022 and can be three to four times higher for small merchants than for large retail chains. It describes the digital euro as a free-to-use public payment option for individuals and a potential counterweight to concentrated card market power, alongside regulated fee caps for acceptance, and notes that the European Commission’s proposed regulation would seek legal tender status to support widespread acceptance. It also outlines intended design features aimed at resilience, including offline functionality and the ability for users to move access between payment service providers if one becomes unavailable. On implementation, the project is described as proceeding in two-year phases, with the European Central Bank’s Governing Council deciding after each phase whether to continue. A final issuance decision is presented as contingent on approval of the EU-level regulation, which remains under development, with the timeline for practical availability described as extending over several years.