Canadians Are Not Ready for a Digital Dollar Initiative

Canadians appear hesitant about fully embracing the Bank of Canada’s (BOC) digital dollar initiative, despite some interest in the concept.

Recent research from the BOC, aimed at understanding changing payment preferences, revealed a persistent favoring of traditional payment methods among the population.

The BOC’s report, published on October 28, highlights Canadians’ preference for cash and card transactions for everyday purchases. A survey from July indicated that fewer than 3% of respondents have used Bitcoin or other cryptocurrencies for routine payments since 2022.

While 42% of survey participants expressed a positive view of a potential digital Canadian dollar, only 20% voiced strong negative feelings about it. The rest remained neutral or showed a lack of understanding of the technology. The report emphasized that interest in a central bank digital currency (CBDC) does not guarantee actual adoption.

Participants indicated that for a digital dollar to be widely accepted, it must prove to be entirely reliable from the start, alongside providing ease of use, privacy, data security, convenience, and an overall better experience than current systems.

Interestingly, most respondents noted that offline functionality was not a priority, preferring cash in emergency situations. The BOC recognizes the need for considerable investment and a public awareness campaign to encourage adoption of a digital currency.

In light of this, the central bank has decided to reduce its efforts on a retail CBDC, opting instead to concentrate on broader payment system research and policy development. Other countries, like Australia and Colombia, have also paused their CBDC projects.