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Survey shows 59% of consumers still prefer cash over CBDCs

Survey shows 59% of consumers still prefer cash over CBDCs

GrafaGrafa2024/09/23 02:45
By:Isaac Francis

A recent survey by Deutsche Bank reveals that a majority of consumers still favor traditional payment methods like cash and debit or credit cards over Central Bank Digital Currencies (CBDCs). 

The poll, conducted across Europe, the U.K., and the U.S., highlights that 59% of respondents believe cash will remain useful, with 44% stating a preference for cash over CBDCs. 

The survey included 4,850 participants, and only 16% of them expect CBDCs to become mainstream payment options. 

The report noted that while cash remains dominant, the COVID-19 pandemic accelerated the shift toward digital payments, especially among younger generations like Gen Z. 

Marion Laboure and Sai Ravindran, Deutsche Bank analysts, noted, "The pandemic triggered a shift to digital payments, but cash remains relevant." 

One major concern about CBDCs is privacy. 

Many respondents believe that general cryptocurrencies offer more privacy than government-backed digital currencies. 

In the U.S., privacy concerns were especially pronounced, with 21% of respondents preferring private cryptocurrencies like Bitcoin

In contrast, European respondents showed a stronger preference for cash due to the anonymity it provides. 

The report also indicated a growing divide between user interest in wholesale CBDCs and skepticism about retail use. 

Central banks worldwide are actively exploring CBDC use cases, but the general public remains cautious. 

For example, a report by the Bank of Canada showed that 86% of Canadians opposed CBDCs, and 92% preferred cash over a digital Canadian dollar. 

As central banks continue to explore CBDCs, privacy and trust issues may slow adoption, with traditional cash remaining a favored payment method for many.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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