Majority of Americans Oppose Digital Dollar Out of Fear of Loss of Privacy, Survey Shows


The Cato Institute, which organizes public policy research, analyzed more than 2,000 responses to an invitation from the US Federal Reserve to comment on the digital dollar and found that two-thirds of respondents appear to be opposed to the idea.

The Washington, D.C.-based libertarian think tank, which opposes a central bank digital currency (CBDC) as a government attempt to control people’s money, found that more than 66% of respondents raise concerns about an eventual American digital currency. Among them are the loss of privacy and damage to the country’s financial system.

The study, however, shows that companies adopt a more favorable view.

“The fact that two-thirds of the 2,000+ participants are against the idea of ​​a CBDC shows not only that this is not a niche issue – as it was a few years ago – but also that Americans recognize the risk that a digital dollar poses. could represent for your financial freedom,” Nicholas Anthony, a policy analyst at Cato, who compiled the statistics, told CoinDesk.

Read more:
• Digital Dollar Could End Banks, Warn Wall Street Lobbyists

For advocates of a digital dollar, the view is that the currency could benefit national security in the race against foreign competitors, as well as reduce the environmental costs of producing paper money and improve confidence in the monetary system, making it more transparent.

Officials at the Fed, the US central bank, which would be responsible for creating and maintaining a digital dollar, said the agency would not act without approval from Congress and the Biden administration. Some even predicted that it would take at least five years to get the plan up and running.

Researchers at the Office of Financial Research (OFR) – an arm of the US Treasury Department that studies risks to the financial system – looked at how a CBDC would affect the inner workings of US finance.

The conclusion, released earlier this month, is that a future panic, with people rushing to turn their assets into digital dollars, appears to be overblown. In fact, they found that a digital dollar could give the government an early warning system for danger signs in the financial market.

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