Bank

Bitcoin

Spectrum

Canadian consumers showed skepticism toward the widespread early adoption of the Bank of Canada’s (BOC) concept of a digital dollar.
The Canadian central bank conducted research to identify consumers’ changes in preferences for payments, aimed at preparing for the development of an in-house central bank digital currency (CBDC).
The BOC’s research paper <a data-ct-non-breakable="null" href="https://www.bankofcanada.ca/wp-content/uploads/2024/10/sdp2024-16.pdf" rel="null" target="null" text="null" title="null">released</a> on Oct. 28 reaffirmed Canadians’ long-standing affinity toward traditional, fiat-based payment systems despite growing support for a digital Canadian dollar.&nbsp;
<figure>
 <img alt="Canadians wary of adopting digital dollar, Bank of Canada finds" src="https://s3.cointelegraph.com/uploads/2024-10/0192d74b-8d1d-76c3-89f3-9a9a8fdacdcc" title="">
 <figcaption style="text-align: center;">
 Spectrum of user segment positions on adoption. Source: Bank of Canada
 </figcaption>
</figure>
According to a Bank of Canada survey from July, Canadians strongly prefer<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/canadian-crypto-adoption-low-preference-cash-cards" rel="null" target="null" text="null" title="https://cointelegraph.com/news/canadian-crypto-adoption-low-preference-cash-cards"> cash and card payments</a> for day-to-day purchases. Less than 3% of Canadians have used Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) or other cryptocurrencies for day-to-day payments since 2022.
<h2 id="interest-in-cbdc-does-not-translate-to-adoption">Interest in CBDC does not translate to adoption</h2>
Still, 42% of the participants in the survey had favorable initial impressions of a&nbsp;hypothetical digital Canadian dollar, while only 20% “disliked” or “hated” the idea. The remaining 38% either took a neutral stance or revealed a lack of understanding of the technology.
<figure>
 <img alt="Canadians wary of adopting digital dollar, Bank of Canada finds" src="https://s3.cointelegraph.com/uploads/2024-10/0192d74d-2256-7e19-9cc3-4b2a9fc6ef02" title="">
 <figcaption style="text-align: center;">
 The opportunity paradox: Users with high payment challenges may be late adopters of a hypothetical Digital Canadian dollar. Source: Bank of Canada 
 </figcaption>
</figure>
While the survey participants were open to CBDC issuance as a way to address limitations of fiat-based payments, such “interest does not necessarily translate to adoption,” the report noted.
Participants said a digital dollar would need to “demonstrate flawless reliability from day one” for widespread early adoption. Other preferences included ease of use, personal information privacy, security of transaction data, convenience and superior user experiences.
Most participants indicated that offline functionality was not critical for adoption, saying they would prefer cash during emergencies. 
<h2 id="canadians-need-cbdc-to-outperform-the-cash-system">Canadians need CBDC to outperform the cash system</h2>
In addition to developing a better payment system, the Bank of Canada sees a need for significant investment and an awareness campaign to drive the adoption of a digital Canadian dollar. 
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/cbdcs-crypto-should-coexist-not-compete-coin-dcx-co-founder" rel="null" target="null" text="null" title="null">CBDCs and crypto should coexist, not compete — CoinDCX co-founder</a>
The Canadian central bank recently said that it is “<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/australia-canada-colombia-were-right-to-pause-cbdc-plans" rel="null" target="null" text="null" title="null">scaling down its work on a retail central bank digital currency</a> and shifting its focus to broader payments system research and policy development.”
Australia and Colombia have also halted plans to launch their respective in-house CBDCs.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/hyped-up-depin-projects-barely-even-use-blockchain-true-or-false/" rel="null" target="null" text="null" title="null">Most DePIN projects barely even use blockchain: True or false?</a>

Canadians wary of adopting digital dollar, Bank of Canada finds

Table of Contents

Cointelegraph

Other articles published on Oct 29, 2024

November’s Pivotal Moment for Bitcoin: How the U.S. Elections and FED Decision Could Shape the Ma...

AI Companions Could Touch $0.1500 Mark As It Rides A New Bullish Wave

Hedera Integrates LayerZero Amid Mainnet v0.54 Release

Vitalik Buterin Outlines Vision for Ethereum’s “The Splurge” Phase

Here’s How Miners Are Betting on Bitcoin’s Price Surge: CryptoQuant

Why is Dogecoin (DOGE) Price Surging Today?

Join our free newsletter for daily crypto updates!