Visa released a paper on central bank digital currencies (CBDC) exploring the common challenges, their solutions, and questions policymakers should consider. Consumer adoption of a retail CBDC is one of the biggest hurdles.
The payments company’s survey showed that 49% of respondents in developed markets were aware of CBDC, while the figure was 70% in emerging markets. However, when it comes to payments, only 20% of consumers in emerging markets would prefer to use a CBDC and the figure is even lower in developed markets at 13%.
The report explores other potential challenges, such as the need to support the offline use of CBDC. Secure point-to-point payments are essential when users have no access to the internet. In a December 2020 paper, Visa proposed an offline payment system (OPS) protocol operating without any payment intermediaries or the internet.
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