- The comprehensive CFA Institute survey reveals limited support for CBDCs with only 42% of over 4,150 respondents believing CBDCs should be launched.
- Concerns over cybersecurity and data privacy are the leading causes of skepticism, along with a lack of understanding of CBDCs among finance professionals.
The results of an extensive survey by the CFA Institute, a leading global association for finance professionals, reveals an interesting trend in the global investment industry towards Central Bank Digital Currencies (CBDCs). A majority of respondents exhibited a reserved stance, highlighting a lack of comprehensive understanding of the mechanisms of digital currencies like digital dollar, euro, yen, or pound.
Understanding and Acceptance of CBDCs
Despite active CBDC programs in countries like the Bahamas and Nigeria, and ongoing explorations in approximately 130 countries, understanding and acceptance of CBDCs among finance professionals are still in the nascent stages. Of the 4,150 participants, less than half (42%) supported the launch of CBDCs. Olivier Fines from the CFA Institute noted a considerable degree of “skepticism” about the benefits of CBDCs, particularly in developed economies where instant digital payments are already a norm.
Differences were also evident in the responses from developed and emerging markets. While only 37% of respondents from developed economies favored CBDCs, the figure rose to 61% for those from emerging markets. Moreover, the degree of acceptance showed stark geographic disparities. While the US saw a mere 31% support for a digital dollar, the figures rose to 70% and 66% for a digital currency in China and India, respectively.
These variations were attributed to the perception in developing economies that CBDCs could potentially address a gap that may not exist in the developed world.
Major Concerns and Future Outlook
The survey brought to light significant apprehensions about CBDCs, with cybersecurity threats topping the list at 69%. Data privacy was a key concern for 64% of participants from developed markets and 57% from developing economies. Furthermore, age seemed to play a role, with younger participants being more receptive to CBDCs than their older counterparts.
Yet, amid the skepticism and concerns, there remains an open-ended question about the actual benefits CBDCs would bring over existing payment systems. As Fines noted, the argument about the absolute necessity of CBDCs is far from settled. The results underscore the need for further discourse and explorations in the realm of digital currencies, paving the way for a potential revolution in global finance.