Canadians Cautious About the Digital Dollar
A recent Bank of Canada survey has found that Canadians remain skeptical of adopting a digital dollar in favour of traditional means of settling their payments, such as cash and cards over digital currency. While some Canadians express interest in a digital dollar, data indicates rapid adoption is not imminent.
Mixed Reactions to Central Bank Digital Currency (CBDC)
A July poll reveals 42% of Canadians feel favourable about the prospect of a digital dollar. Yet even more think it’s a pretty good idea. Ambivalence reins, as 38% were undecided or didn’t know anything about digital currency, while fully 20% simply didn’t like the idea at all. Overall, this ambivalence speaks to Canadians’ expectation that any CBDC will need to be “flawlessly reliable” from day one if it’s to earn the public’s trust.
Trust in Traditional Payment Methods Remains Strong
Results also reveal that fewer than 3% of Canadians have used cryptocurrencies for daily purchases since 2022. This means there is a great likeliness for fiat-based systems of payment, where cash and card transactions remain the norm. The point fairly indicates that one of the most important barriers for the Bank of Canada in considering how a digital dollar might replace or supplement methods that have earned a high degree of trust.
Public Awareness and Trust Are Key Concerns
Canadians say that for such a digital dollar to fly, it needs three things: privacy, security, and ease of use. Those polled also emphasized the need for it to work offline, particularly in emergencies. Several mentioned that during crises, they would wish to revert to cash-a sign that cash has been historically taken as a reliable fallback when everything else fails.
Bank of Canada Changes Tack
In this regard, the Bank of Canada has in recent times scaled back its work on the development of retail CBDC and shifted resources to research and policy development concerning the large payment system. According to experts, the bank may have to kick-start some awareness campaigns to educate the public about the advantage and functionality of the digital dollar, as trust is an important plank for adoption.
A Gradual Approach to Digital Currency Adoption
This study has made it quite clear that while some Canadians ‘see value in a digital dollar for secure, convenient transactions’, for the most part, they embrace adoption in stages. Thus, if the Bank of Canada is to be successful, it will have to make certain that the digital dollar addresses concerns about security, privacy, and usability while working to gain the public’s trust over time.
