Regulated Central Bank Digital Currencies (CBDCs) came into the financial space when governments try to develop their version of digital currencies. This was necessitated by the growth in cryptocurrencies, and governments don’t want to be left behind. China has been seen as the forerunner of a digitalized currency run and managed by the government.
Other countries have also embarked on the mission to develop their own CBDC. But the U.S., known as a technology hub, has been skeptical about the introduction of its digital dollar. And it seems most Americans don’t even want the digital dollar to see the light of the day.
A new report has emerged that shows the majority of Americans also prefer not having a CBDC.
Genesis Mining researched to find out the opinions of Americans when it comes to the introduction of a CBDC. 400 respondents participated in the study. Out of this number, 50 percent of them oppose the introduction of a digital dollar, while only 25 percent welcomed the development.
However, the number of those opposing the introduction of a CBDC in the US has almost doubled, with 85 percent now opposing its introduction and a mere 13% in favor.
Many of them opined that CBDC may encourage more criminal activities, which is the reason why they don’t want its implementation.
The result of the survey was made known to the public the same week Loretta Mester, Cleveland Federal Reserve President, stated that the Fed has been carrying out expansive research on the benefits and risks of CBDC during this Covid-19 period.
Poor monetary literacy
The research carried out by Genesis Mining also shows that the general public has poor monetary literacy. About 38 percent think the US dollar is backed by oil, gold, or bonds on the report, while 13 percent said they have no idea. While the respondents showed little interest when it comes to monetary policy, 88 percent of them think inflation is a vital issue in monetary policy.
Also, more than 85 percent of the respondents said they are familiar with crypto assets, but less than 25% of them traded crypto or are willing to trade in the future.
Another report published by the Bank of Canada last month revealed that there is still poor literacy when it comes to cryptocurrency. But the report noted that the general public is more likely to buy crypto than the highly financially literate people.