German Businesses Skeptical About Digital Euro Despite Potential Benefits

A recent study reveals that many German companies consider the digital euro proposed by the European Central Bank (ECB) to be largely unnecessary, although fintech experts highlight its innovative potential. Wolfgang Wuermeling, a researcher at ESMT Berlin specializing in the digital euro, pointed out that businesses have yet to recognize its innovation benefits. He underscored that automated payments enabled by a digital euro could significantly reduce business risks, especially by facilitating transactions with unknown customers through faster, safer, and more cost-effective payment methods.

Despite these advantages—such as avoiding payment delays, defaults, and reducing administrative burdens—businesses remain unconvinced about adopting the digital euro. This hesitance exists within the broader context of German small enterprises grappling with significant operational risks. According to the Hiscox Global Protection Gap Report 2025, 92% of self-employed individuals and small business owners in Germany lose sleep over risks including rising costs, inflation, economic downturns, theft, property damage, and cyberattacks.

Notably, 70% of these small businesses face insurance gaps and may lack adequate coverage, with many not reviewing policies for over three years, despite growing and digitalizing their operations. Roman Potyka, Underwriting Director at Hiscox Deutschland, stresses the necessity for businesses to regularly reassess insurance strategies to mitigate risks effectively.

While the digital euro could help reduce transactional uncertainties, these broader business risk concerns highlight the complex environment in which Germany’s SMEs operate. The gap between technological innovations like the digital euro and real-world business apprehensions about risk management remains a key hurdle to wider adoption.