Deutsche Bank Survey Finds Cash Still Favored Over CBDCs by Consumers

Even though central banks all over the world are encouraging the creation of Central Bank Digital Currencies (CBDCs), most customers still prefer cash payments. According to a recent Deutsche Bank survey, people still prefer using cash and debit or credit cards over other traditional payment options.

5,9% of respondents to the survey, which had 4,850 participants from the US, UK, and Europe, said they thought currency would always have a place in the economy. Plus, 44% of respondents said they would rather use cash than CBDCs, and only 16% thought digital currencies will become a commonplace alternative in the future.

Deutsche Bank analysts Marion Laboure and Sai Ravindran pointed out, “While 59% of consumers believe that cash will always be relevant, the COVID-19 pandemic accelerated the shift toward digital payments, particularly among Gen Z.”

Privacy Concerns Hinder CBDC Adoption

Privacy concerns also affect perceptions of CBDCs, particularly in the United States where a large number of users favor private cryptocurrencies like Bitcoin over those supported by the government. According to the survey, 21% of participants preferred cryptocurrencies because they thought they offered more anonymity.

European customers, on the other hand, demonstrated a clear preference for cash and valued its secrecy. This tendency was also noted in a Bank of Canada research, which stated that 92% of Canadians preferred cash to a digital Canadian dollar (CAD) and that 86% of Canadians opposed CBDCs.

While central banks are still investigating applications for wholesale CBDCs, consumer mistrust and privacy issues continue to be major obstacles to their wider implementation.