Skepticism towards central bank digital currencies (CBDCs) appears to be prevalent in both Canada and the UK, according to recent surveys conducted by Trezor and WealthRocket. These surveys shed light on the reservations people have about embracing CBDCs as an alternative to cash.
In Canada, approximately 39% of the 1,500 survey respondents expressed concerns about losing control over their finances if CBDCs were implemented. Many individuals fear that granting the government unilateral control over their money may compromise their financial autonomy. The survey also revealed that 59% of Canadians were willing to use CBDCs for payments, while 25% said they were not willing at all.
Furthermore, Canadians have other concerns about CBDCs, including the potential for fraud, cyber attacks, and the phasing out of cash. However, the Bank of Canada has reassured citizens that paper bills will continue to be a part of the financial system. Despite these reservations, Canadians also recognize the potential benefits of CBDCs, such as increased safety and convenience. The Bank of Canada has emphasized that a CBDC could protect the country’s economy from the rise of cryptocurrencies or CBDCs issued by other nations.
In the UK, the Bank of England and HM Treasury have been exploring the possibility of a CBDC, often referred to as the “digital pound,” since 2021. The UK government mentioned the digital pound as a potential CBDC in a recent Consultation Paper. However, the survey conducted by Trezor reveals that public awareness and knowledge about CBDCs remain relatively low, compared to the crypto community.
While 55% of the surveyed Brits have heard of the digital pound, their understanding of its potential impact remains limited. Respondents raised concerns about authorities having control over their funds, expiration of CBDCs, and control over which goods and services can be paid for using CBDCs. Specifically, 73% of respondents were concerned about giving authorities control of their funds, and 67% expressed worry about the expiration of CBDCs, with funds disappearing if not spent. Another 62% expressed concern about control over payment options with CBDCs.
The surveys also highlight the influence of political leanings on attitudes towards CBDCs. Conservative-leaning politicians, such as Canadian Conservative Pierre Poilievre and Republican Presidential nominee Ron DeSantis, have expressed opposition to CBDCs. As seen with Ron DeSantis, he has even signed a bill banning CBDCs in the state of Florida.
DeSantis has raised concerns about the potential use of CBDCs for control and surveillance. He argues that the government could use CBDCs to restrict gas purchases to combat global warming or track firearm purchases. DeSantis emphasizes the importance of financial independence and privacy, stating that such arrangements jeopardize Americans’ ability to conduct business without the government monitoring every transaction.
In conclusion, skepticism towards CBDCs is apparent in Canada and the UK. Concerns revolve around the loss of financial autonomy, potential fraud and cyber attacks, the phasing out of cash, and control over funds and payment options. However, some individuals recognize the potential benefits, such as increased safety and convenience. Additionally, political leanings influence attitudes towards CBDCs, with conservative politicians expressing opposition due to concerns about government control and surveillance.
