Canadians Oppose Digital Loonie: Bank of Canada Survey
A recent survey conducted by the Bank of Canada reveals that Canadians are overwhelmingly against the central bank researching and issuing a digital loonie. The report states that citizens and stakeholders have concerns about the potential violation of financial privacy and prefer existing payment methods over a digital currency.
Survey Results on CBDCs
The report analyzed responses from a public consultation on central bank digital currencies (CBDCs) that was open to all Canadians. The survey received 89,424 responses from individuals across different provinces and income levels.
According to the report, 85% of respondents stated that they would not use a digital Canadian dollar. Additionally, 92% expressed a preference for existing payment options such as cash or cards.
Reasons for Opposition
The majority of respondents who already hold cryptocurrencies (14%) still preferred alternative schemes over a digital dollar. Reasons for opposition to a CBDC included concerns about government control (19%), privacy risks (15%), and a loss of individual choice (15%). Furthermore, 86% of respondents called for legislation mandating merchants to accept cash as payment.
Lack of Trust in Institutions
The survey also revealed low levels of trust in the central bank, government, and financial institutions. Only 18% trusted the central bank to handle identity-related information transparently, while trust in the government and financial institutions stood at 12% and 27%, respectively.
Bank of Canada’s Response
Despite reservations expressed by respondents, 78% of them believed that the Bank of Canada would not consider public feedback during the development of a CBDC. However, the central bank has responded to these concerns by setting new development goals that aim to address privacy and accessibility issues.
The Bank of Canada stated that it will explore options for a digital dollar that do not require identification, a bank account, or the disclosure of private information for basic financial transactions.
Hot Take: Conservative Party’s Stance
In line with some Republican lawmakers in the United States, the leader of Canada’s Conservative Party has promised to ban CBDCs if elected as prime minister.
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