Recent research reveals that a significant number of finance professionals are hesitant about the implementation of central banking digital currencies (CBDCs).
The CFA Institute surveyed 90,000 of its global members and found that only 42% support the idea of central banks issuing their own digital currencies. In contrast, 34% oppose the concept, while 24% are indifferent.
One potential reason for this skepticism is a lack of understanding. The survey indicated that 40% of respondents possess little to no knowledge of CBDCs, with only 12% claiming a strong grasp of the subject.
The CFA suggests that central banks and governments need to engage in extensive educational outreach to clarify the purpose and conditions surrounding the launch of CBDCs.
Participants in the survey were also asked to elaborate on their views regarding the launch of CBDCs. Concerns about data privacy and insufficient use cases were the primary objections, mentioned by 50% and 40% of respondents, respectively. Conversely, 58% identified the reduction of currency and settlement risk as the main advantage of CBDCs.
The concept of CBDCs has met with varying degrees of support from different central banks. While countries like Italy and the UK have initiated pilot programs, others, such as the Central Bank of Canada, have expressed doubts about the ability of CBDCs to address unmet payment needs in an increasingly cashless society.