Member Article

Market volatility is putting emerging markets off crypto, but excitement for CBDCs continues, survey reveals

A new survey by Temtum Group has found that people in emerging markets are ready for a cashless future, but accessibility and lack of infrastructure still acts as a barrier to widespread adoption.

Temtum Group, an advanced technology blockchain provider, surveyed 250 people from 10 countries across Africa, Asia, and Latin America, and found that while usage of cash and electronic payments was neck in neck, 97% of respondents want to use electronic payments more regularly.

Nearly half of respondents (47%) said that the convenience of physical cash held them back from using electronic payments more regularly. However, electronic payments are seen as more trustworthy with 73% opting to use electronic payments for large purchases.

The appetite for digital money in emerging markets is clear. Nearly 70% own cryptocurrency, increasing to around three quarters of respondents aged 24-35. However, the current volatility in crypto markets is the main concern for over half (51%) of respondents.

**A stable alternative **

Central Bank Digital Currency has been touted as the secure, modern alternative to private cryptocurrency. Positive sentiment around CBDCs is high, with 73% those familiar with the technology in favour of their government implementing a digital currency.

Richard Dennis, temtum Group CEO, said: “The implementation of CBDCs in emerging markets could reduce the financial inclusion gap in ways that private enterprises have been unable to achieve thus far. For example, the majority of women only used a couple of days a week (30%) , compared to the majority of men (41%) who used electronic payments almost daily. CBDCs have lower barriers to entry and require less infrastructure, making them a more inclusive option than traditional banking options.”

With 90% seeing the increase in digital money as a benefit to their country’s economy, it’s clear that emerging markets are primed for a tech-focused future. However, to optimise the benefits of a CBDC, governments must do more to raise its profile as 40% of respondents weren’t aware of the existence of CBDC technology.

This was posted in Bdaily's Members' News section by Lucy Jefferson .