Consumers more receptive to digital currencies issued by a central bank

Survey finds several countries are considering issuing digital currencies, with India being the latest

A physical banknote and coin imitations of the Bitcoin cryptocurrency. Only 10% of those surveyed said they would not opt for a digital currency issued by their central bank. AFP

About 64 per cent of people surveyed across 10 countries said they would adopt digital currencies issued by their central bank, a study has found.

European deep-tech company Guardtime surveyed consumers across Europe and Asia, including the UAE.

Only 10 per cent of those surveyed said they would not opt for a digital currency issued by their central bank.

Several countries the world are considering issuing digital currencies, with India being the latest.

The Reserve Bank of India, the country's apex bank, said it was considering a "phased introduction" of digital currency. The development was contingent on legal changes in the country's exchange rules and information-technology laws, deputy governor T Rabi Sankar said on Thursday.

Others, such as the European Central Bank, are considering looking into plans for a "digital euro".

The developments come amid a change in consumer behaviour away from cash as a result of the Covid-19 pandemic.

Consumers surveyed by Guardtime, which works with central banks around the world in exploring the development of digital currency, found that a third of adults would be willing to convert their currency savings into a digital asset.

About 26 per cent of those surveyed said they would be prepared to take the leap to government-issued digital currencies within six months.

However, 11 per cent said they would not consider converting their savings to such digital assets.

About 30 per cent of people surveyed said they would accept salaries in government-mandated digital currency within a month.

But, another 27 per cent said they would only consider a switch within six months.