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Survey suggests industry divided on CBDCs

Survey suggests industry divided on CBDCs

The majority of finance professionals do not support the launch of central banking digital currencies (CBDCs) according to recently published research.

The CFA Institute canvassed 90,000 of its global membership and found that only 42% were in favour of central banks launching their own digital currency with 34% opposed to the idea and 24% having no opinion. 

One possible reason for the lack of support is a lack of knowledge. The same survey found that 40% of respondents have little or no understanding of CBDCs while just 12% professed to having a strong understanding. 

According to the CFA, the research suggests that central banks a\nd governments will need to "engage in a signfiicant educational and outreach effort to explain why they would launch CBDCs, for what purpose and under what circumstance".

The research also asked respondents to name their respective reasons for supporting and opposing the launch of a CBDC. Data privacy and lack of use cases were cited as the main objections by 50% and 40% of respondents respectively. A reduction of currency and settlement risk were cited as the biggest benefit of CBDCs by 58% of respondents. 

The nascent CBDC concept has enjoyed differing levels of support from central banks. While the likes of Italy and the UK have launched pilot projects, others like the Central Bank of Canada, have voiced doubts about the ability of CBDCs to fulfil unmet payment needs in a cashless society.


Comments: (1)

Nick Ogden
Nick Ogden - RTGS.global - London 17 August, 2023, 14:18Be the first to give this comment the thumbs up 0 likes

This result is not surprising. Whenever you innovate you get those that embrace and those that fear the impact. Part of the issue with a mixture of CBDC variants is that it needs a clear global demonstration of how a particular, say wCBDC could work. This would demonstrate its benefits, risks and issues to banks and regulators alike. The corollary is that we all now accept Swift, and the global interoperability of the Card schemes, but I wonder if a poll like this had been undertaken when the idea was proposed, what the results would have been? Anyone remember traveller or eurocheques ? Right for the time and now obsolete ?