Investment professionals in China and India appear to be expressing strong support for central bank digital currencies (CBDCs). Revealed in a recent survey by the CFA Institute, the data suggests a unique perspective within emerging markets, while views in developed nations remain mixed.
The CFA Institute, known for providing Certified Financial Analyst Credentialing, conducted a survey with its members probing on their understanding and support of the CBDC. The findings present a cold reception for CBDCs in general even though 42% agreed that central banks should introduce digital version of fiat currencies.
In stark contrast, support for a CBDC launch was lowest in the United States, at only 31%, and at just 37% overall in developed markets. On the other hand, endorsement in emerging markets averaged at a staggering 61%, with India and China showing the highest support at 66% and 70% respectively.
Banking professionals were also surveyed and showed higher support than asset managers. 50% of commercial bankers and 51% from investment banks back the idea of CBDC, while only 38% of the asset managers surveyed share the same sentiment.
Reasons for support and dissent vary. Supporters identify accelerated payments and the central role of authorities in the development of cryptocurrencies as the primary motivations. Opponents, on the other hand, express concerns over privacy, with 50% citing this as the main deterrent. A smaller percentage (40%) believe there’s a lack of use case for digital currencies.
Interestingly, 46% believe a CBDC would make little or no impact on financial inclusion. This view isn’t shared by a clear majority in China and India who believe a CBDC would improve inclusion. U.S. respondents held the lowest opinion on this aspect at 24%.
In summary, this survey data demonstrates divergent views towards CBDCs based on geography and profession. Although some countries and professionals are more supportive of its integration, others remain on the fence. The technology itself has much to offer but faces substantial hurdles particularly concerning privacy and implementation. As we forge ahead in the digital era, will we see a tide change in these opinions, or will CBDCs stay as future prospects and not immediate realities?
Source: Cointelegraph
