CFA Institute global survey reveals limited awareness and support for CBDCs

TL;DR Breakdown

  • The recent CFA Institute members’ survey has revealed that there is little awareness of and support for CBDCs worldwide.
  • While most respondents had little support for CBDCs, the MENA(Middle East and North Africa) area had substantially more optimistic respondents.
  • Governments and central banks have an almost universal consensus to advance CBDC-related efforts.

Description

The CFA Institute, the global association of investment professionals, today published a global survey on Central Bank Digital Currencies (CBDC) that looked into the opinions of its members on the potential risks and benefits of CBDCs, including their potential impact on financial stability and financial inclusion.  According to the CFA Institute members’ survey, there is … Read more

The CFA Institute, the global association of investment professionals, today published a global survey on Central Bank Digital Currencies (CBDC) that looked into the opinions of its members on the potential risks and benefits of CBDCs, including their potential impact on financial stability and financial inclusion. 

According to the CFA Institute members’ survey, there is little awareness of and support for CBDCs worldwide; 34 percent of respondents disagreed that central banks should work on CBDCs, while a majority (42%) agreed they should. Meanwhile, just 13% of respondents claimed to have a thorough grasp of CBDCs.

The degree of support or resistance for CBDCs was related to age. According to the study, just 23% of respondents under 30 were against them, compared to 37% of respondents over 55.

CFA Institute finds CBDC optimism in MENA area

While most respondents had little support for CBDCs, the MENA(Middle East and North Africa) area had substantially more optimistic respondents. Nearly two-thirds (63%) of respondents agreed that central banks should introduce CBDCs, and nearly three-quarters (73%) said they would use a CBDC if one were made available by a central bank in a personal or professional capacity.

The findings are consistent with trends in other emerging economies, which are frequently more open to the potential advantages and utility of CBDCs. The MENA respondents’ optimism comes after the UAE Central Bank’s recent announcement of “The Digital Dirham” program, which would see the introduction of digital money issued and insured by the central bank.

In the CFA Institute survey findings, accelerating payments and transfers was recognized as the main argument in favor of introducing a CBDC, with three main issues: cybersecurity and fraud, data privacy, and a lack of use cases. 

Compared to the worldwide average, respondents’ opinions on the potential advantages of CBDCs for financial stability and inclusion were also more favorable and upbeat in the MENA area. Fifty-four percent of respondents agree that CBDCs will likely improve financial literacy for underserved economic sectors or populations. More than half (56 percent) think CBDCs will improve financial stability. 

When asked about the influence of CBDCs on private cryptos, 49 percent of MENA participants said that CBDCs and cryptocurrencies could coexist. This point of view recognizes the importance digital assets and currencies backed by the government may have in promoting a vibrant digital economy.

Central banks worldwide creating CBDCs

While there is still more work to achieve effective implementation and widespread adoption of CBDCs, Antoine Shehadeh, Senior Director of MENA at CFA Institute, commented on the survey findings saying there is a significant interest in growing countries like the MENA. However, the public and market players must be better informed about the potential advantages of CBDCs for central banks to succeed.

Meanwhile, governments and central banks have an almost universal consensus to advance CBDC-related efforts. According to a report by the Bank of International Settlements(BIS), 93 percent of central banks were working on digital currencies in some capacity. 

The BIS found that central banks worldwide are quickly creating digital currency projects, with twenty anticipated to release their versions this decade. In addition, 24 central banks are projected to have digital currencies in use by 2030. That may include up to 15 retail and nine wholesale CBDCs. The survey, which included 86 central banks globally, was carried out between October and December 2022.

At the same time, Atlantic Council research revealed that 130 nations were considering developing their own CBDC.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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