The digital euro, a proposed central bank digital currency (CBDC) by The European Central Bank (ECB), has been moving forward with its plans to introduce a digital euro. However, it faces significant hurdles, including opposition within Europe and skepticism about its ability to challenge the developing BRICS currency on a global scale.

A recent ECB working paper, titled ‘Consumer Attitudes Towards a Central Bank Digital Currency’, highlights the deep-seated skepticism among European households. A recent survey by the European Central Bank (ECB) reveals that European consumers show little enthusiasm for adopting a digital euro, citing confidence in existing payment methods. Residents of Spain and Germany have voiced their concerns, reflecting a broader unease about the project.

Executives worry that the digital euro will make bank runs more likely by acting as a safe haven into which people can transfer their money during a crisis. This fear contributes to the resistance against its implementation.

Indeed, the digital euro has faced opposition as it has attempted to challenge the developing BRICS currency. The BRICS nations are exploring alternative financial systems to reduce reliance on the US dollar. By using digital and potentially blockchain-based payments, BRICS Pay could enable faster, more cost-effective transactions between BRICS countries, according to reports. This alternative financial infrastructure poses a competitive challenge to the digital euro's ambitions for global adoption.

The future of the digital euro remains uncertain, contingent on addressing public concerns, navigating geopolitical pressures, and demonstrating a clear value proposition against established and emerging payment systems.