In a recent public consultation conducted by the Bank of Canada, the nation’s central bank, regarding the adoption of a central bank digital currency (CBDC), Canadians have expressed a surprising reluctance to embrace the concept.
Despite a high level of awareness surrounding CBDCs, the feedback from over 89,000 respondents has indicated a prevailing negative sentiment, raising concerns about the widespread acceptance of the Digital Canadian Dollar.
High awareness, low enthusiasm
One of the most striking findings from the “Digital Canadian Dollar Public Consultation Report” was that almost 95% of the respondents were either aware or familiar with the concept of a digital Canadian dollar. This level of awareness might typically be seen as a positive indicator for the adoption of such a currency.
However, the report suggests otherwise, as the majority of Canadians continue to favor traditional paper cash payments, with 93% of respondents still making daily transactions using physical currency. This demonstrates that high awareness does not necessarily translate into enthusiasm for digital alternatives.
The survey revealed a clear preference among respondents for existing forms of payment over the prospect of a CBDC. In fact, the majority of respondents advised the Bank of Canada to cease its research and development efforts related to the digital Canadian dollar. This strong sentiment against CBDC adoption suggests that Canadians are content with their current payment options, which include credit and debit cards, as well as various online payment methods.
Perhaps one of the most intriguing findings of the consultation was the observation that individuals who were already aware of CBDCs tended to be more reluctant to embrace the technology compared to those who had little or no knowledge about it. This unexpected outcome challenges the assumption that increased awareness naturally leads to a higher willingness to adopt new digital currencies.
Crypto holders show interest
While the majority of respondents expressed skepticism and resistance toward CBDCs, a small demographic of participants who had previous experience with cryptocurrencies, such as Bitcoin (BTC), showed a greater interest in using CBDCs. This suggests that individuals who have already engaged with digital assets might be more open to experimenting with new digital forms of currency.
The results of the public consultation present a complex picture for the future of the Digital Canadian Dollar. On one hand, there is widespread awareness of the concept, which is often considered a vital step towards adoption. On the other hand, the overwhelming preference for traditional payment methods and the resistance to CBDCs among those who are already aware of them raise significant challenges for the Bank of Canada’s CBDC initiative.
Public feedback and future prospects
Despite the clear and consistent feedback from the respondents, it remains uncertain whether their preferences will be taken into account in the development of the CBDC initiative. The consultation results indicate that the Canadian public believes their input may not influence the central bank’s decisions in this matter.
