Bank of Canada disclosed that Canadians have admired the adoption of Central Bank Digital Currency (CBDC). According to the recently disclosed paper by the Bank of Canada, typical Canadians have found little reason to use CBDC because they have faced troubles in accessing financial services.
Bank of Canada Paper
Bank of Canada released a paper on 10th August 2023 covering a hypothetical situation. In the paper, the Bank of Canada focused on a scenario in which attention was drawn to virtual currency as cash is partially eliminated in order to observe the crucial role of CBDC. As Canadians do not found any trouble with financial services like bank accounts, and credit and debit cards so there are weak incentives for the Central Bank Digital Currency (CBDC).
According to the Canadian Bank Paper, about 98% of Canadian adults have bank accounts, 87% possess credit cards and 90% both urban and rural have the ability to connect to the high-quality internet. However, it is believed that such a transition of replacing cash with CBDC would limit the payment options for those who have less awareness of the technology. And those who are majorly dependent on physical payments would find it difficult for digital payments.
Cash Vs Digital Currency
Paper nods to the necessity of cash in case of emergency payments as in such scenarios cash is king and leads the payments. But, at the same time virtual currency has its significance in the world of payments. Although, the majority of merchants have no plans to go cashless on the other hand the acceptance of virtual currency is getting on the trend.
Our latest survey results show that 92% of merchants have no plans to go cashless.— Bank of Canada (@bankofcanada) August 8, 2023
Read more results from our survey: https://t.co/DX0lUJ90u7#cdnecon #PaymentMethods #Survey pic.twitter.com/017UYxiIC4
It is important to note that the paper doesn’t predict the reaction of Canadians toward CBDC, rather it focuses on the various reasons for the use of Central Bank Digital Currency (CBDC).
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