Earlier quoted context omitted.
Germany and "digital" payments have a history due to old reasons. We don't appreciate its meaning anymore, but cash is literally the only anonymous payment method you can have in this lifetime, and people in Germany tend NOT to trust any entity/company/government holding your data for no particular purpose. The downside of this is the split brain problem that you have with distributed systems: a state knows something…
N'ah mate, the main reason is tax fraud, not trust in data holding entities, otherwise nobody in Germany would use Google/Instagram/TikTok if they cared so much about their data privacy. Being free to dodge the tax man is incredibly valuable for small business and individuals in Germany as a lot of wealth is built on tax fraud. That's the kind of privacy people mean.
Germany has 80+ million people. Having nobody on Instagram/Tiktok would be unthinkable.
However, historically speaking, this hesitation to have privacy over "convenience" is implemented still everywhere.
You can't just minimize it with "people want to evade tax", although it's also true.