New survey shows cautious support, reflects global push towards new way to structure financial systems
Canadians’ view of cryptocurrencies is often reflective of its current unregulated status and somewhat ‘wild west’ reputation; but what about digital coins from the central bank?
Would a digital currency offered by the Bank of Canada (BoC) and subject to the checks and balances that would inevitably be in place be acceptable to consumers?
A new survey from WealthRocket reveals that almost 6 in 10 respondents would be willing to use a central bank digital currency (CBDC) to varying degrees.
However, common concerns include the potential for fraud (56%), cyber-attacks (53%), potential misuse of data (44%), and losing control over personal finances (39%).
Respondents were also not convinced that the BoC can be relied on to safeguard their privacy with CBDCs – most (515) are only somewhat confident while 25% are not confident at all.
Using a digital currency instead of cash would not be universally accepted with just 25% saying they would be happy with that, 38% saying maybe, and 12% definitely not. However 25% would be willing to use a CBDC alongside cash.
Global push
Globally, CBDCs are being considered by several central banks and global organizations.
The Bank for International Settlements (BIS) is publishing a report next week after working with several central banks to determine the potential for digital currencies.
The BIS says that programmable central bank money “could knit together tokenised commercial bank money and assets on a single platform to enable transactions and contracts in real time.”
It believes that a new financial infrastructure could revolutionise the monetary and financial system by making new types of economic arrangement possible, faster and at lower cost.
“We are at the cusp of another major leap in the monetary and financial system, which will have far-reaching consequences for the economy and society at large,” said Hyun Song Shin, Economic Adviser and Head of Research of the BIS. “Bringing together central bank money, commercial money, and different assets on the same platform, all tokenised and interacting, opens up a whole new range of possibilities. This would be a game-changer in how we think about money and how transactions take place.”
