Lawrence Damilola
The Bank of Canada (BOC) recently published findings showing that Canadian consumers remain hesitant about adopting a digital dollar, preferring traditional payment methods such as cash and cards.
This research is part of the BOC’s preparation for a potential central bank digital currency (CBDC). It reveals that fewer than 3% of Canadians have used Bitcoin or other cryptocurrencies for everyday purchases since 2022. This underlines the nation’s continued reliance on fiat-based payments.
Mixed Reception for Digital Canadian Dollar
According to the survey, Canadians have a mixed outlook on the idea of a CBDC. While 42% of participants held favorable initial opinions on a digital Canadian dollar, 20% expressed negative views. Thirty-eight percent remained neutral or unfamiliar with the concept.
Participants noted that a digital dollar must demonstrate consistent reliability from its inception for widespread adoption. Other factors cited as crucial for adoption included ease of use, personal information privacy, transaction data security, and overall user convenience.
Challenges to Early CBDC Adoption
Though respondents were open to a digital dollar as a potential improvement over traditional payments, the report pointed out that interest alone does not imply readiness for adoption. Many consumers emphasized that a CBDC must surpass current cash systems in reliability and usability. Despite these preferences, most participants considered offline functionality less essential, suggesting they would rely on cash in emergencies.
The Bank of Canada recognizes these challenges in transitioning to a digital payment system. The report suggests that a significant investment in public awareness and digital infrastructure would be needed to encourage adoption if a CBDC is launched.
Recently, the BOC announced it would scale down work on a retail-focused CBDC and shift focus toward broader payment system research and policy development, further examining the necessary groundwork for a potential digital currency in Canada.
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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
