Central Bank Digital Currencies (CBDCs) have not enjoyed the outcomes many initially expected. Several countries that initially moved to launch a CBDC are reportedly backing down on such plans due to the lack of public interest in such assets.
Recently, new reports claim that Canadians have shown little interest in digital currency. The Bank of Canada (BOC) had previously considered launching an in-house CBDC. As a result, the BOC conducted research aimed at evaluating public preference in payment methods.
Canadians Stick to Cash and Cards Over Crypto, Survey Reveals
The survey once again reiterated Canada’s long-standing preference for traditional fiat-based payment methods. Interestingly, a previous survey conducted in July revealed that Canadians prefer card and cash payments to crypto payments.
Surprisingly, less than 3% of Canadians have used cryptocurrencies for payment since 2022. The recent BOC survey noted that 42% of respondents were open to the idea of a hypothetical digital loonie or Canadian dollar. Meanwhile, 38% had little idea of the concept of CBDC, while 20% voiced their outright “hatred” for the concept.
Many believe the digital dollar could address the limitations of existing fiat-based payment systems. However, the BOC report concludes that such interest does not amount to adoption.
Aside from poor understanding of CBDCs, many Canadians believe several factors have to be in place for a CBDC to penetrate the Canadian market. One factor mostly mentioned was ease of use, and another was the security of transaction data.
Source: Bank of Canada BOC to scale down CBDC plans
Last month, the BOC announced that it was scaling down plans to launch a digital Canadian dollar. The financial regulator explained that it did not find a compelling reason to move forward with such plans.
The BOC has been evaluating plans for a digital loonie since 2020. Interestingly, Canada isn’t the only country backing down on their CDBC plans. Both Australia and Colombia have also halted moves to launch such assets.
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