Canadians Reluctant to Adopt Digital Dollar, Says Bank of Canada

Research by the Bank of Canada has shown mixed views on the adoption of a Canadian digital dollar. Canadian consumers expressed skepticism about early adoption of a central bank digital currency (CBDC) introduced by the Bank of Canada.

A research paper released by the Bank on October 28 highlighted Canadians’ long-standing preference for traditional payment methods linked to fiat currency, despite growing interest in a digital Canadian dollar. According to a survey conducted in July, Canadians primarily use cash or cards for everyday purchases. Since 2022, fewer than 3% have used Bitcoin or other cryptocurrencies for daily transactions.

Interest in a CBDC Does Not Equate to Adoption

Approximately 42% of survey respondents had initially positive impressions of a digital Canadian dollar, while around 20% actively disliked the concept. Another 38% held neutral views or lacked understanding of the technology. While participants showed interest in a CBDC as a solution for fiat-based payment limitations, the report emphasized that “interest does not mean adoption.”

Respondents indicated that a digital dollar would require proven reliability, privacy, security, and ease of use from the outset to encourage widespread early adoption. Most participants emphasized that offline functionality was not essential, preferring cash for emergency use.

Canadians Expect a CBDC to Surpass Traditional Payment Systems

The Bank of Canada concluded that significant investment and public awareness campaigns would be needed to drive the adoption of a digital dollar. Recently, the Bank scaled back its retail CBDC efforts to focus more on payments system research and policy development. Other countries, such as Australia and Colombia, have also postponed their CBDC plans.