85% of Canadians Say They Won’t Use Digital Currency: Bank of Canada Report

The Bank of Canada building in Ottawa in a file photo. Sean Kilpatrick/The Canadian Press

An overwhelming majority of Canadians have told the Bank of Canada in consultations they would not use an eventual central bank digital currency (CBDC).

The Bank of Canada (BoC) released the results of extensive consultations on the matter on Nov. 29.

In its public consultation survey with 89,423 participants, 85 percent of respondents said they would not use a digital Canadian dollar. Another 12 percent said they would “potentially” use it, whereas 3 percent said they didn’t know.

Responding to the question “Are there any circumstances where you think you would prefer using a digital Canadian dollar instead of your current payment methods?” respondents answered “No” at a rate of 92 percent.

Those findings were mentioned near the bottom of the BoC’s public consultation report. Just below, the Bank indicated advice received from respondents.

It indicates that 79 percent of respondents believe regulations should be put in place to require merchants to accept cash as a form of payment.

A majority (60 percent) also said they do not trust the BoC to consider the public’s feedback regarding the CBDC, and 82 percent said the Bank should not even be researching CBDC.

“Our responsibility is to ensure the Canadian payments system is ready for the economy of the future,” Senior Deputy Governor Carolyn Rogers said in a news release accompanying the publication of the consultation results.

“The way people pay for things and use money is changing. If Canadians decide a digital dollar is necessary, our obligation is to be ready.”

The online consultation was run in collaboration with Forum Research and took place from May 8 to June 19. It was open to Canadian residents aged 18 years and older.

A digital dollar, or CBDC, is a virtual currency issued by central banks. Critics have cited privacy and security concerns regarding the ability of governments to track every transaction conducted with digital currency.

The BoC notes in its news release that the feedback it received from consultations indicates that Canadians want to keep holding cash and that they’re worried their privacy and security could be compromised by CBDC.

It also says the feedback mentions a digital dollars “should be easily accessible” and “should not add to financial stability risks.”

Along with public consultations, the BoC also conducted focus groups and held consultations with members of the financial sectors and civil society groups.

“Most participants were skeptical that a digital Canadian dollar would provide important benefits,” the Bank wrote about its engagement with financial institutions.

Regarding engagement with civil society groups, the Bank says several participants mentioned that “marginalized” Canadians do not have high confidence in the government or financial institutions.

“These participants also said that the design of a digital dollar would need to strike a delicate balance between privacy and security,” according to the Bank’s account.

BoC Governor Tiff Macklem was asked at a talk on Nov. 22 when Canadians could see a digital Canadian dollar.

“Bank notes, cash, is not going away. Canadians like to use cash and they will be able to continue to use cash,” Mr. Macklem said at the Chamber of Commerce in Saint John, N.B. He added that the decision to implement CBDC is in the hands of the Parliament but that the BoC is getting ready for the possibility of its adoption.