A Negative Sentiment towards Canada’s Central Bank Digital Currency (CBDC)
A recent public consultation on Canada’s central bank digital currency (CBDC) initiative has revealed a predominantly negative sentiment among Canadians. This confirms the concerns of the Bank of Canada regarding the widespread adoption of CBDCs in the country.
The Canadian central bank conducted the “Digital Canadian Dollar Public Consultation Report” to determine the role of CBDCs in a digital payment-dominated world. However, the survey, which received 89,423 responses, highlighted Canadians’ demand for regulations mandating merchants to accept cash as payment.
The Bank of Canada’s report shows that nearly 95% of respondents were familiar with the concept of a digital Canadian dollar. However, this high level of awareness did not translate into support for CBDC adoption in Canada.
Preference for Existing Payment Methods
Of the respondents, 93% primarily use paper cash for daily transactions but also utilize credit and debit cards and other online payment methods. Additionally, only 15% of respondents held Bitcoin (BTC) and other cryptocurrencies.
Most respondents advised the Bank of Canada to halt its research and development efforts on a digital Canadian dollar. Unfortunately, they do not believe their feedback will be considered for the CBDC initiative.
Interestingly, those who were aware of CBDCs showed less enthusiasm for adopting the technology compared to those who were unfamiliar with it. However, respondents who had previous experience with cryptocurrencies expressed more interest in using CBDCs.
Hot Take: Canadians Express Skepticism towards Central Bank Digital Currency
The results from Canada’s public consultation on central bank digital currency reveal a general skepticism among Canadians regarding its adoption. The majority of respondents preferred existing forms of payment over a digital Canadian dollar. This poses a challenge for the Bank of Canada as it considers the future of digital fiat payments in the country. Despite the high awareness of CBDCs, Canadians are hesitant to embrace the technology. It remains to be seen how the Bank of Canada will address these concerns and whether it will proceed with its CBDC initiative.
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