Hold onto your wallets, folks! Turns out, private cryptos like Bitcoin are getting way more love than those government-backed digital currencies.
Picture this: Central banks worldwide are hustling to see if launching a Central Bank Digital Currency (CBDC) is even doable. But guess what? A fresh survey suggests cash isn't about to vanish anytime soon because most people aren't exactly jumping for joy over these official digital currencies.
Deutsche Bank, Germany’s investment bigwig, polled nearly 5,000 people from Europe, the UK, and the US. And the verdict? Good old cash and trusty debit or credit cards still reign supreme.
Check this out: 59% of folks think cash will always have a place, and 44% flat out said they'd rather stick with cash for payments than dive into the CBDC pool. Only a tiny 16% believe these digital dollars will ever go mainstream.
Deutsche Bank’s brainiacs, Marion Laboure and Sai Ravindran, pointed out that the pandemic gave digital payments a boost, especially among Gen Z. But still, most people are wary of CBDCs. In fact, 31% said they'd prefer a government-managed crypto over one backed by private entities.
The survey also highlighted that privacy is a big deal for most people when it comes to digital currencies. In the US, for instance, many think general cryptocurrencies offer better privacy than government-backed options. Around 21% of respondents even said they’d choose a private cryptocurrency like Bitcoin over CBDCs.
In Europe, the love for cash is even stronger due to the privacy it affords, more so than in the US and UK.
So, while central banks are getting creative with wholesale CBDC ideas, user skepticism is a major roadblock. A Canadian report showed a staggering 86% of Canadians are against CBDCs, with 92% still preferring cash over a digital Canadian dollar.
The bottom line? Cash isn't going out of style just yet, and private cryptos are still winning the popularity contest.
