A recent discussion held by the Bank of Canada explores how the Canadian citizens would react to the concept of a potential government-issued digital currency.
Within the paper’s content, a hypothetical scenario is envisioned where physical cash is on the brink of becoming obsolete.
The study aims to assess whether this novel digital currency could serve as a solution for individuals with limited access to conventional banking resources.
However, the findings include that the majority of individuals would likely be inclined to adopt digital currency, as they already possess convenient means of financial management.
Based on the insights provided in the study, it is evident that a significant proportion, around 98%, of Canadian adults possess a bank account.
Additionally, a considerable 87% of the population holds credit cards, while an impressive 90% of households, both in rural and urban areas, have access to reliable high-speed internet.
The study also highlights a crucial aspect: if the transition from physical currency to digital “loonies” were to occur, individuals who are less comfortable with technology would find their payment choices limited.
The study found that a significant portion of the Canadian population might not find a compelling reason to embrace this digital currency, given their existing convenient access to traditional banking services and payment cards.
Likewise, those who heavily rely on cash for transactions would face challenges in conducting everyday payments.
Moreover, the anticipated relatively low adoption rate of a CBDC would contribute to a situation where merchants might now be enthusiastic about accepting it. Notably, a substantial 92% of merchants currently have no intention to go “cashless.”
The paper explicitly stated its intention of not attempting to predict the precise sentiments of Canadians towards the prospective Central Bank Digital Currency (CBDC).
It acknowledged the possibility that a greater number of individuals could express interest in adopting the CBDC for various motivations.
However, even if this heightened interest were to materialize, the paper underscored substantial hurdles that both individuals and businesses would confront when endeavouring to extensively embrace the new digital currency.
Also Read: BOE To Recruit Researchers For CBDC Academic Advisory Group
