A recent survey cited by Reuters and conducted by the CFA Institute, a renowned worldwide association for bankers, investors, and finance chiefs, has shed light on the sentiment surrounding central bank digital currencies (CBDCs). The survey, which garnered responses from over 4,150 participants, highlighted that only 42 per cent of them believed CBDCs should be launched. It also indicated a lack of understanding about CBDCs and revealed concerns about their potential benefits and risks, particularly in developed economies. The results demonstrated a significant divide between respondents from developed and emerging markets, with China and India showing higher levels of support. Age was also found to be a factor influencing attitudes towards CBDCs.
Limited Support and Understanding
The survey’s most striking finding was the limited support for the launch of CBDCs, with only 42 per cent of respondents favoring their introduction. Moreover, the study showed that even among a financially literate cohort like the CFA Institute members, there was a lack of understanding about what CBDCs actually entail, according to Olivier Fines, an official from the institute.
Global Divide and Concerns
The survey revealed a general feeling of skepticism about the potential benefits of CBDCs, especially in developed economies where existing online and mobile payment systems are already efficient. Developed markets exhibited less support, with only 37 per cent in favor of CBDCs compared to 61 per cent in emerging markets. In the United States, just 31 per cent of respondents supported the idea of a digital dollar, while support rates were slightly higher in Canada (38 per cent), the European Union (45 per cent), and the United Kingdom (46 per cent).
In contrast, China, currently running the world’s largest CBDC pilot project, demonstrated stronger support, with 70 per cent of respondents favouring CBDCs. India, which plans to launch an e-rupee the following year, also showed considerable support, with 66 per cent of respondents backing the initiative. This divergence in sentiment between developed and developing economies could be attributed to a perceived need for CBDCs to address specific gaps in the latter.
Even central banks, including the Bank of England, led by Andrew Bailey, expressed doubts about CBDCs, referring to them as a ‘solution looking for a problem.’ The survey revealed that nearly half of UK respondents opposing CBDCs believed that introducing these digital currencies would not address any pressing needs.
Among the global respondents, the most significant concern regarding CBDCs was the risk of cyberhacking, with 69 per cent of participants expressing worries about potential security breaches. Data privacy was also a major concern for 64 per cent of respondents in developed markets and 57 per cent in developing economies.
The survey identified a correlation between age and attitudes towards CBDCs. Participants under the age of 30 were more receptive to CBDCs, with less than a quarter opposing their introduction. In contrast, 37 per cent of respondents aged over 55 expressed opposition to CBDCs. This trend indicates that younger individuals, akin to crypto asset enthusiasts, are more open to adopting CBDCs. However, the question remains whether this perception will evolve with age.
Despite ongoing discussions and growing interest in CBDCs, the survey results indicated that the main question remains: What distinct advantages will CBDCs offer in comparison to existing payment systems? Reuters cited Olivier Fines of the CFA Institute, who emphasised that the argument surrounding the necessity of CBDCs has not yet been conclusively settled.
(With inputs from Reuters)
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