A new survey conducted by Deutsche Bank has revealed that despite the growing interest in central bank digital currencies (CBDCs), consumers remain reluctant to adopt them.
The bank surveyed 4,850 individuals in Europe, the UK, and the US to gauge their attitudes towards CBDCs. The results indicate that cash continues to be a preferred payment method, with a majority of respondents expressing a preference for debit or credit cards over CBDCs.
“While 59% of consumers believe that cash will always be relevant, the COVID-19 pandemic accelerated the shift toward digital payments, particularly among Gen Z,” analysts Marion Laboure and Sai Ravindran noted in the report.
CBDCs, digital forms of fiat currency issued by central banks, offer the potential for faster, cheaper, and more secure transactions. However, the survey findings suggest that consumers have concerns about privacy, security, and the overall utility of CBDCs.
Only 16% of respondents believed that CBDCs would become mainstream, and a significant portion expressed a preference for central bank-backed cryptos over private versions. Privacy issues were also a concern, with many respondents expressing concerns about government surveillance.
Deutsche Bank highlighted the increasing focus of central banks on wholesale applications of CBDCs, citing recent initiatives by the Swiss National Bank, European Central Bank, and Federal Reserve Bank of New York.
