DETERMINANTS OF DIGITAL EURO ACCEPTANCE AMONG STUDENTS: THE ROLE OF PRIVACY CONCERNS AND THE LIMITATIONS OF SECURITY MEASURES

Abstract

Purpose: The research examines the factors influencing university students’ intention to use the digital euro, problematising the role of privacy concerns and the effectiveness of security measures
Methodology: The research is based on survey data from 150 students at the Faculty of Economics, Business and Tourism, University of Split, Croatia. Binary logistic regression, ROC curve analysis and chi-square independence tests were used.
Results: The results show that privacy concerns compared to other payment methods, preference for cash payments, belief in lower transaction cost, and familiarity with the digital euro significantly influence students’ intention to adopt this digital currency. In particular, it was found that a high concern about privacy and a strong preference for cash had a negative impact on the intention to adopt the digital euro. On the other hand, a higher level of belief in lower transaction costs and better familiarity with the digital euro had a positive effect on their willingness to adopt. Additionally, the analysis showed that technical security measures, such as a digital signature, biometrics, encryption and pseudonymisation, did not significantly mitigate students’ privacy concerns.
Conclusion: The research highlights the need to tackle privacy issues and strengthen trust in institutions and the legal framework, indicating that technical solutions alone are not enough to encourage adoption of the digital euro. Implementation of the digital euro as a means of payment requires broad strategies that pair technological progress with strong institutional protection, thereby reducing privacy risks and increasing trust of the digital euro as a payment instrument.