Consumers Prefer Cash to CBDC: Deutsche Bank Survey

Although several central banks around the world are actively exploring the feasibility of launching a central bank digital currency (CBDC), a recent survey has revealed that cash is not going away anytime soon, as most consumers are not enthusiastic with the use of these products.

The survey, conducted by Deutsche Bank, Germany’s leading investment bank, polled 4,850 respondents in Europe, the United Kingdom and the United States. The majority of respondents stated that they prefer conventional payment methods such as cash and debit or credit cards.

Cash Reigns Supreme

According to the study, 59% of respondents believe that cash will always be useful, and 44% say they would prefer to use cash for payments over CBDCs. Only a small percentage of respondents, 16%, expect CBDCs to become mainstream payment options.

Deutsche Bank analysts Marion Laboure and Sai Ravindran noted in the report: “While 59% of consumers believe cash will always be relevant, the COVID-19 pandemic accelerated the shift towards payments digital, especially among Generation Z”.

While most respondents were hesitant to use a CBDC, around 31% said they would rather use a government-run cryptocurrency than one backed by private institutions.

Privacy concerns remain

The survey further revealed that privacy concerns significantly affect CBDC adoption. Most participants, especially in the US, believe that mainstream cryptocurrencies offer better privacy than government-backed digital currencies. About 21% of respondents said they preferred a private cryptocurrency like Bitcoin.

On the other hand, most European respondents showed a stronger preference for cash, due to the anonymity it offers, than those in the US and the UK.

According to the survey, central banks are increasing their exploration of wholesale CBDC use cases, however, user skepticism remains a major issue affecting mainstream adoption. A Bank of Canada report revealed that 86% of Canadians oppose CBDCs, with 92% preferring cash to a digital Canadian dollar (CAD).

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