Canadians are usually hesitant to embrace a digital version of the national currency, according to a recent Bank of Canada survey. The majority of Canadians still choose traditional payment methods like cash and credit cards for their everyday purchases, even though there is considerable interest in a possible central bank digital currency (CBDC).
According to a July survey, 42% of Canadians had favorable initial thoughts about a digital dollar, compared to just 20% who were against the notion and 38% who were either neutral or had never heard of it. However, a positive attitude does not necessarily translate into a strong desire for quick adoption. According to Canadians, in order for a digital dollar to gain widespread acceptance, it must exhibit perfect dependability right away, providing convenience, improved privacy, safe transaction data, and an all-around user-friendly experience.
The results demonstrate Canadians’ widespread trust in traditional payment methods. Less than 3% of respondents said they have used cryptocurrencies like Bitcoin for everyday shopping since 2022. Cash is still the favored alternative in emergency situations, according to several poll respondents, who also highlighted its accessibility and dependability.
The Bank of Canada admits that in order to encourage the adoption of a digital dollar, a substantial expenditure on public awareness efforts may be necessary to help Canadians comprehend the advantages and possibilities of a CBDC. However, the bank recently decided to reduce its retail CBDC initiatives due to the cautious response from Canadians. It will instead direct attention toward more general payment-related research and policy development.
Given that Canadians still prefer cash and credit cards, a smooth transition to a digital dollar might necessitate a methodical, well-informed strategy that respects the public’s faith in current payment methods. A digital dollar must outperform conventional options in terms of convenience, security, and privacy if it is to become popular. As the Bank of Canada investigates the prospects for digital money in Canada, it will have to carefully weigh these factors.
