Survey by CFA Institute uncovers limited support and understanding of CBDCs among global investment industry.
The CFA Institute recently conducted an extensive survey on central bank digital currencies (CBDCs) involving over 4,150 participants from the investment industry. The results indicate that support for CBDCs is relatively low, and there is a lack of understanding regarding their potential implementation and benefits.
Lack of Enthusiasm for CBDCs
Out of the respondents, only 42% expressed belief in launching CBDCs. This sentiment reflects a sense of skepticism, particularly in developed economies where people already have convenient online and mobile payment options. The CFA Institute’s Olivier Fines attributed this skepticism to a possible misconception in developing economies that CBDCs would fill a gap that doesn’t exist in the developed world.
The survey revealed differing levels of support across regions. Developed markets displayed lower support, with only 37% favoring CBDCs, while emerging markets showed greater enthusiasm, with 61% in favor.
In the United States, support for a digital dollar was at 31%, while Canada, the European Union, and the United Kingdom had support rates of 38%, 45%, and 46% respectively. In contrast, China and India demonstrated higher support rates, with 70% and 66% respectively.
Age also played a role in shaping opinions about Central Bank Digital Currencies. Respondents under 30 were more receptive to CBDCs, with less than a quarter expressing opposition. On the other hand, 37% of respondents over 55 opposed the concept. This correlation suggests that younger individuals, akin to crypto assets, are more open to CBDC adoption.
Key Concerns Surrounding the Launch and Usage of CBDCs
The survey highlighted the primary concerns surrounding CBDCs. Globally, the most significant apprehension was the risk of cyberhacking, with 69% of respondents expressing concern. Data privacy was also a major issue, with 64% of respondents from developed markets and 57% from developing economies expressing worry.
Even central bankers have raised questions about Central Bank Digital Currencies. Andrew Bailey, head of the Bank of England, emphasized the need to identify the problem that CBDCs aim to solve before embracing the technology.
The survey’s main question revolves around the advantages of Central Bank Digital Currencies over existing payment systems. With limited support and significant concerns surrounding their implementation, the necessity of Central Bank Digital Currencies remains uncertain.
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