According to a new survey by crypto mining firm Genesis Mining, most U.S. citizens are against the introduction of a Central Bank Digital Currency (CBDC). A survey conducted by Genesis mining discovered that out of the 400 participants, less than 25% agreed to the proposition that the government should abandon paper money in favor of a digital dollar, while more than half were opposed. The number of CBDC proponents has nearly doubled in the last 12 months.
The majority of people do not support a CDBC.
More than 85% of the survey respondents expressed familiarity with cryptocurrencies, but many associated virtual currencies with criminal activity, likely contributing to the poor popular support for a national digital currency. The survey was published the same week that Cleveland Federal Reserve President Loretta Mester revealed that the Fed has been researching the risks and benefits of CBDC throughout the ongoing global pandemic. The report also identified poor monetary literacy among the general public, finding that only 38% of respondents believed the U.S. dollar is backed by gold, bonds, or oil, while an additional 13% don’t know.
Federal Reserve revealed details about ongoing research into a CBDC.
The President of the Federal Reserve Bank of Cleveland had revealed details of the central bank’s ongoing research into a potential digital dollar. Loretta Mester emphasized that the Federal Reserve has been exploring the central bank digital currencies since before the pandemic, noting that its Board of Governors has been “building and testing a range of distributed ledger platforms to understand their potential benefits and tradeoffs.”
The President further noted that initiatives from regional Federal Reserve branches, including a multi-year partnership between the Massachusetts Institute of Technology (MIT) and the Boston Fed, in addition to collaboration between the Fed’s New York Branch and the Bank for International Settlements.