Canadians Show Cold Shoulder to Digital Dollar Initiative
While Canada’s digital dollar proposal garners curiosity, widespread adoption remains elusive
The Bank of Canada’s (BOC) recent research reveals a cautious stance among Canadians regarding the proposed digital dollar, despite the central bank’s push for a homegrown digital currency. On October 28, the BOC released findings showing that Canadians still lean heavily on traditional cash and card payments, preferring these methods for everyday transactions over digital alternatives.
According to a BOC survey conducted in July, fewer than 3% of Canadians have used Bitcoin or other cryptocurrencies for daily purchases since 2022. While 42% of survey participants expressed a positive view of a hypothetical digital Canadian dollar, only 20% opposed it, with the remainder holding neutral or uncertain positions. This highlights an interest but not a readiness for adoption.
For a digital dollar to succeed, Canadians require seamless reliability from the outset. Survey respondents prioritized factors such as privacy, security, and ease of use over offline accessibility, noting they would default to cash in emergencies. This skepticism aligns with the BOC’s findings that, although a digital currency could address some limitations of current systems, it must outpace cash and cards in performance.
Amid lukewarm reception, the Bank of Canada has shifted resources from developing a digital dollar to exploring broader payment system improvements. This aligns with similar moves by Australia and Colombia, who recently paused their CBDC plans.