Survey reveals varying degrees of support for launch of CBDCs

Tyrone Cutajar July 29, 2023

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Survey reveals varying degrees of support for launch of CBDCs

A survey carried out by the CFA Institute of the worldwide investing industry finds little support for central bank digital currencies (CBDCs). In the largest study of the global investment sector on CBDCs to date reveals just 42% of the more than 4,150 participants thought that CBDCs should be introduced.

Global agreement CBDCs — Central banks should launch a CBDC – global results

Several nations, like the Bahamas and Nigeria, have already established CBDCs, and about 130 additional nations representing about 95% of the world economy are considering doing the same (source, The Atlantic Council’s Central Bank Digital Currency Tracker).

Support for CBDCs

Only 37% of respondents from developed markets said central banks should launch a CBDC versus 61% from emerging markets. In more detail, different groups showed varying levels of support:

Central bank digital currency, CBDC — Central banks should launch a CBDC

It is worth noting that the People’s Bank of China is running the world’s largest CBDC pilot project in China. Additionally, The Reserve Bank of India has plans to launch the digital equivalent of the rupee.

The data above shows significant differences. One reason could be that there is a clearer need for a CBDC in emerging markets that does not exist in developed markets, where digital payments, among other options are more widely used and readily available.

Use of CBDCs — Differences in agreement by geographical location

The perception that in CBDCs would fill a gap in emerging markets that may not be apparent in developed markets, become clearer when looking at the level of agreement that a CBDC would enhance financial inclusion and financial stability.

Financial inclusion, stability, CBDC — Financial inclusion and stability

Interestingly, opinions concerning cybersecurity were identical in both markets at 69%, whereas and data privacy was a concern for 57% in emerging markets and only slightly more at 64% in developed markets. On the other hand, in all markets, the main reason in support of a CBDC launch is accelerated payments and transfers. There is also global agreement that CBDCs can coexist with private cryptocurrencies.

Read the survey report here.

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