The CFA Institute, a global association for bankers, investors, and finance professionals, recently conducted an extensive survey on central bank digital currencies (CBDCs), revealing limited support and a lack of understanding surrounding digital currencies like the digital dollar, euro, yen, or pound. Out of the 4,150 respondents who participated in the survey, only 42 per cent believed that CBDCs should be launched. While countries like the Bahamas and Nigeria have already introduced CBDCs, approximately 130 other nations, representing 98 per cent of the global economy, are exploring the possibility of doing the same.
Olivier Fines, spokesperson for the CFA Institute, expressed that even among their well-informed and financially literate members, there was minimal comprehension of CBDCs. He highlighted that a general scepticism prevailed, especially in developed economies where digital payment methods were already well-established.
Respondents from developed markets displayed lesser enthusiasm for CBDCs, with only 37 per cent in favour, compared to 61 per cent from emerging markets. The United States, Canada, the European Union, and the United Kingdom demonstrated varying levels of support for the concept, with 31 per cent, 38 per cent, 45 per cent, and 46 per cent respectively.
In contrast, China, with the world's largest CBDC pilot project, had a significantly higher support rate at 70 per cent. Similarly, India, which plans to launch an e-rupee in the near future, showed a support rate of 66 per cent.
Fines noted that this disparity could be attributed to the perception in developing economies that CBDCs could address specific gaps not present in developed nations.
Various central banks, including the Bank of England under Andrew Bailey's leadership, have questioned the necessity of CBDCs, referring to them as potential solutions seeking problems.
Regarding concerns, the survey found that 69 per cent of respondents globally viewed cyberhacking as the most significant issue associated with CBDCs. Additionally, data privacy emerged as a major concern for 64 per cent of respondents in developed markets and 57 per cent in developing economies.
Age was found to be a factor in supporting or opposing CBDCs, with younger respondents being more receptive, as seen in only 25 per cent of those under 30 opposing them, compared to 37 per cent among those over 55.
Ultimately, the main question arising from the survey was the actual benefits CBDCs could bring in comparison to existing payment systems. Fines stated that the argument for their necessity was yet to be definitively settled.
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