Cash Tops CBDCs in Popularity Among Consumers, Deutsche Bank Reveals

Despite the fact that almost all central banks are investigating the usage of central bank digital currencies (CBDCs), a recent survey by Deutsche Bank indicates that consumers are still hesitant about them. 4,850 people from Europe, the U.K., and the U.S. participated in the survey, which reveals a preference for conventional payment methods over CBDCs.

Consumer Preferences Lean Towards Cash and Cards

According to the report, a sizable proportion of customers still prefer using cards and cash. Although the majority of respondents (59%) think cash will always be useful, most of them prefer debit or credit cards to CBDCs. The low percentage of respondents (only 16%) who anticipate CBDCs to become commonplace highlights the difficulty central banks have in winning over customers.

“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,” analysts Marion Laboure and Sai Ravindran noted in the report.

Privacy concerns further impact CBDC adoption. In the U.S., 21% of participants believe general cryptocurrencies offer better privacy than government-backed digital currencies. European consumers, valuing anonymity, showed a stronger preference for cash compared to their U.K. and U.S. counterparts. Despite the growing focus on wholesale CBDC applications by central banks like the Swiss National Bank and the European Central Bank, consumer skepticism remains a significant hurdle.