By Rebel News | Created at 2024-10-29 22:30:31 | Updated at 2024-10-30 05:38:08
10 hours ago
A “significant number” of Canadians would not be open to using federal digital cash like Bitcoin, the Bank of Canada said. Skeptics included citizens suspicious of government overreach, a study revealed.
“Interest exists in a hypothetical digital Canadian dollar,” said the Bank report The Consumer Value Proposition For A Hypothetical Digital Canadian Dollar. “However interest does not necessarily translate to adoption.”
“Our results show cash remains an important method of payment,” wrote researchers. “Certain groups may strongly resist a digital dollar if they conflate its launch with the end of cash issuance.”
Still, the Bank last December 19 filed Trademarks Act applications to claim ownership of a “digital Canadian dollar” though the electronic currency does not exist.
“Whether and when a digital dollar will become needed is uncertain,” officials said last November 29. “The decision to go ahead with a digital dollar belongs to Canadians through their representatives in Parliament.”
The Bank launched public consultations in May 2023 on the ‘usefulness’ of digital currencies, asking Canadians about the security and privacy features they would desire for digital currency. The online survey closed on June 19.
“A significant number would reject it,” said Hypothetical Digital Canadian Dollar. “For some mindset segments, their lack of interest in a hypothetical digital Canadian dollar was heavily influenced by perceptions of government overreach.”
PPC Leader Maxime Bernier earlier told Rebel News that a government digital currency poses serious “privacy concerns,” as the Bank of Canada — a government organization — would know the “details” of all transactions.
“The Government of Canada will have all this centralized information at their disposal if they want to use it,” he claimed. “Can we trust them after [Finance Minister Chrystia] Freeland froze bank accounts during the Freedom Convoy? No!”
Additionally, most Canadians felt well served by current means of payment, reads the report. “Financially vulnerable segments often have the most to gain from this payment method but are most resistant to adoption,” it said.
Researchers found the most enthusiastic supporters of a Canadian version of Bitcoin were teenagers, students and “young adults joining the workforce.” Older Canadians were skeptical, said Hypothetical Digital Canadian Dollar.
“They were skeptical of the need for this new form of money and of its reliability,” said the report. “They did not trust that concepts were secure or that their personal information would be kept private.”
Considerations for appeal and adoption include universal merchant acceptance, low costs, easy access, simplified online payments, shared payment features, budgeting tools and customizable security and privacy settings, reported Blacklock’s Reporter.
The Bank in a 2023 report Unmet Payment Needs And A Central Bank Digital Currency said implementing a central bank digital currency “could be challenging” as most Canadians access several methods of payment. Most adults (98%) own a bank account and debit card, while 87% possess at least one credit card, it said.
The report also concluded a significant number of Canadians “dislike using technology and are therefore reluctant to make payments online.” It estimated 11% of people with internet access refuse to bank online and 16% do not shop online.
The Bank earlier pledged not to phase out cash. “Cash isn't going anywhere,” it said. Payment Needs estimated about 14% have abandoned cash purchases.
A 2020 Cash Alternative Survey said the typical Canadian carries $70 in their wallet, mainly $5 and $10 bills, and keeps roughly $185 in their vehicle glove box or dresser drawer.
Alex Dhaliwal
Calgary Based Journalist
Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.
