Good day everyone,
I hope you are all well and having an excellent day, welcome to CryptoGod-1’s blog on all things crypto. Recent survey's conducted in both Canada and the United Kingdom have revealed that a high level of doubt and scepticism remains around the idea of governments / central banks introducing a digital currency.
Surveys
Recent surveys in both Canada and the UK have demonstrated the scepticism of citizens towards the implementation of central bank digital currencies (CBDC's) is prevalent around the world. The studies were completed by Trezor and WealthRocket, and people in both Canada and the UK have shown their reservations about embracing CBDCs as an alternative means of currency. With the possibility of a U.S. CBDC looming as a hot topic in the States, the concern is not just isolated to North America. While Canada also holds this resentment and fear, so does their ancestors across the pond in Europe. The two surveys were published last week and both posed distinct questions, yet reached similar conclusions.
In both Canada and the UK the reservations surrounding the technology the central banks and governments across the globe are exploring was evident, with many stating they have concerns over the authorities having control over people’s funds. In Canada alone, 39% of 1,500 respondents noted how a loss of control over their finances was a concern. Steven Lubka, head of private clients and family offices at Swan Bitcoin stated:
“There is a distrust of government in so many countries around the world. They don't want to just hand over unilateral control over their money to their states.”
CBDC's are a digital token which are viewed similar to stable coins, however the CBDC's are issued and maintained by their respective governments or central banks. This differs from the likes of USDC which is issued by Circle, or USDC which is issued by Tether, both private companies. The survey, along with a public response to CBDC's in Canada, came to a close on Friday the 30th of June, while in the UK the deadline for public comment periods come to a close on the 19th of June.
Previous research done by the Cato Institute, a libertarian think tank, found that only 16% of Americans are in favour of adopting a CBDC, with more pushback from Republicans than Democrats. In the State of Florida, Republican presidential nominee Ron DeSantis has recently signed a bill which bans the use of CBDC's in the State. HE highlighted the concerns raised around the potential use of CBDCs to control and survey Americans by the government, and how they could be used to restrict people from buying gas to combat global warming or track how often someone purchases firearms. DeSantis noted:
"Anyone with their eyes open could see the danger this type of an arrangement would mean for Americans who want to exercise their financial independence and would like to be able to conduct business without having the government know every single transaction they're making in real time."
CBDC's in the United Kingdom
The Prime Minister of the UK, Rishi Sunak, suggested that the Bank of England’s CBDC should be known as “Britcoin” back when he was Chancellor in 2021. It was back then when the Bank of England and HM Treasury began exploring the possibility of a CBDC, and the government in the UK has mentioned a possible "digital pound" or “digital sterling” as a potential CBDC in a recent Consultation paper.
However, in Trezor’s survey, they discovered that among the 1,000 surveyed, only 55% had ever heard of a digital pound. The relatively low public awareness of this endeavour is low compared to other nations, which have had widespread awareness of CBDCs in crypto spaces for years. Those who have heard of the digital pound are still relatively unaware of its potential impact, although 73% of respondents did raise concerns regarding authorities having control over their funds.
On top of that, a further 67% of the Brits who responded were troubled by the idea that CBDCs could expire, with funds going away if they’re not spent. Similar to the scepticism of DeSantis, 62% of respondents expressed their concern about control over which goods and services could be paid for using the tech.
In a statement by Trezor Bitcoin Analyst Josef Tětek, he noted how there is a large mismatch between people’s knowledge of Britcoin and how it could possibly impact people in the UK.
“It’s clear that the vast majority of people are not comfortable with financial authorities having the kind of powers that a CBDC could grant them,” he said. “Before the UK [...] goes too far down the path to roll-out, we need a comprehensive, society-wide debate with ordinary people.”
CBDC's in the Canada
In Canada, a total of 59% of the 1,500 Canadians surveyed noted that they would be willing to use CBDC's for payments, while 25% said they would not be willing to use them at all. Currently Canada’s central bank, the Bank of Canada, has no plans to issue a CBDC in the near future, but it is exploring the technology in case Canadian Parliament asks for one down the line.
Within the survey by WealthRocket, 39% of Canadians who responded noted that they had concern over losing control over their finances if CBDCs were implemented. Many of those individuals fear that if the government is granted unilateral control over their money it may result in a compromise in their financial autonomy.
Other concerns raised by Canadians were based around the potential of fraud, cyber attacks, and the phasing out of cash. Some of the potential benefits that were raised included safety and convenience. The Bank of Canada also noted that a domestic CBDC could help protect the nations economy from the rise of cryptocurrencies or CBDCs issued by other nations.
The Canadian Conservative Pierre Poilievre noted last April that CBDC's are a no go if he was ever elected as Prime Minister, which is a similar position to the DeSantis. It should also be noted that in the United State, presidential candidate Robert F. Kennedy, Jr. has pointed to Canada as a reason to be confident in Bitcoin. He stated that he was inspired to support Bitcoin after the Canadian government tried to quell protests against COVID-19 restrictions in the region by freezing protestors’ bank accounts. In his keynote speech in Miami back in May 2023, he stated:
“When I witnessed this cataclysm—this devastating use of government repression—I realized for the first time how free money is as important to freedom as free expression, Bitcoin is a bulwark against precisely this kind of government and corporate expansion and intrusion. As president, I will make sure that your right to hold and use Bitcoin is inviolable.”
Will CBDC's become a thing in the near, or distant, future, and how will each individual nation respond to those of others? While their are fears, many should also remember that pure state ran and owned CBDC's would be detrimental to businesses such as banking and Fintech, so likely if they do come about there will be a compromise of sorts. What that will be however remains to be seen.
Have a great day.
Peace. CryptoGod-1.
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