Consumers prefer cash over CBDC: Deutsche Bank survey

While several central banks around the world are actively exploring the feasibility of launching a central bank digital currency (CBDC), a recent survey revealed that cash is not going away anytime soon as the majority of consumers are not enthusiastic about using such products.

The survey, conducted by Deutsche Bank, Germany’s leading investment bank, polled 4,850 people in Europe, the UK and the US. The majority of respondents said they preferred traditional payment methods such as cash and debit or credit cards.

Money reigns supreme

According to the study, 59% of respondents believe that cash will always be useful, and 44% of them say they would prefer to use cash rather than CBDCs to pay. Only a small percentage of respondents, 16%, expect CBDCs to become mainstream payment options.

Deutsche Bank analysts Marion Laboure and Sai Ravindran note in the report: “While 59% of consumers believe cash will always be relevant, the COVID-19 pandemic has accelerated the shift to digital payments, particularly among Gen Z.”

Although most respondents are hesitant to use a CBDC, about 31% said they would prefer to use a government-run cryptocurrency over one backed by private institutions.

Privacy concerns remain

The survey also found that privacy concerns are having a significant impact on CBDC adoption. Most respondents, especially in the United States, believe that general cryptocurrencies offer better privacy than government-backed digital currencies. About 21% of respondents said they would prefer a private cryptocurrency like Bitcoin.

In contrast, most European respondents showed a stronger preference for cash, due to the anonymity it offers, than those in the United States and the United Kingdom.

According to the survey, central banks are increasingly exploring use cases for CBDCs in bulk, but user skepticism remains a major issue affecting mainstream adoption. A Bank of Canada report found that 86% of Canadians are opposed to CBDCs, with 92% preferring cash over the digital Canadian dollar (CAD).