A recent report from the Bank of Canada reveals that there is a limited appetite among Canadians for the adoption of a CBDC.
This hesitancy is attributed to the fact that the majority of Canadians are satisfied with their present payment options.
With the availability of multiple payment methods, such as cash, bank accounts, and both debit and credit cards, Canadians have little incentive to transition to a CBDC. The research further emphasised, “Ownership and use of other crypto instruments for payments is even less significant.” This underscores the lack of motivation for the populace to migrate to CBDC, especially when the current payment methods function smoothly without any major hitches.
Furthermore, the research highlighted that as of now, 14% of Canadians have ceased using cash. The year 2021 recorded a mere 13% of Canadians owning Bitcoin, and only a small fraction, about 1%, actually used it for transaction purposes.
Nevertheless, a survey conducted in June showcased that nearly 59% of Canadians would consider using a CBDC if one were introduced. A significant 25% of participants even expressed a preference for CBDC over traditional cash.
Throughout June, the Bank of Canada also pursued feedback from its citizens about the possibility of a digital Canadian currency. Among the feedback gathered, political resistance to a CBDC was evident. A majority of the respondents, 56% to be exact, raised concerns regarding potential fraudulent activities, and a similar percentage, 53%, voiced apprehensions about cyberattacks.
Regarding trust, 51% of respondents conveyed confidence in the Bank of Canada to safeguard their privacy. However, 25% remained sceptical.
It’s crucial to note that this wariness towards CBDCs isn’t just limited to Canada. As Russia is gearing up to launch its own digital currency, a poll revealed that nearly 32% believe the digital ruble could potentially be a scam.
In conclusion, the Bank of Canada determined that significant barriers and the lack of compelling reasons are hindering the adoption of CBDCs. Yet, on a global scale, as per the Atlantic Council, 130 countries are contemplating introducing a CBDC, with 19 G20 nations already pioneering the initiative.
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