Digimentality 2022

Fear and favouring of digital currency

Commissioned by
Digimentality 2022: Fear and favouring of digital currency 2

Contents

1 About the report

2 Introduction
Defining digital payments

5 Part I: A shifting landscape

Some ways to go
Future expectations
Moving forward

13 Part II: Green light from investors?

Evolution leads to new barriers
A changing portfolio outlook
The next phase

19 Conclusion
Key takeaways

21 Appendix 1: Consumer survey demographics

23 Appendix 2: Institutional survey demographics

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency
About this report
Digimentality 2022—Fear and favouring of digital
currency is a report from Economist Impact,
commissioned by Crypto.com, exploring the
extent to which digital payments are trusted by
consumers and what barriers may exist to basic
monetary functions becoming predominantly
electronic or digital. The report compares the
attitudes of consumers with similar surveys
conducted in 2020 and 2021 and adds the
perspective of institutional investors and
corporate treasurers. Kim Andreasson is the
author and Siddharth Poddar is the editor of
this report.
A consumer survey of 3,000 people conducted
in January and February 2022 provides data
for the first part of the report. One-half of the
respondents came from developed economies
(United States, United Kingdom, France, South
Korea, Australia and Singapore) and one-half
from developing ones (Brazil, Turkey, Vietnam,
South Africa and the Philippines). About seven
in ten respondents were between 18 and 41
years old with the remaining aged 42 years or
older. Roughly half (53%) were men and the rest
women (47%). Various educational backgrounds
are represented, with the largest numbers of
respondents (about 3 in 4) having a university or
professional degree. All respondents had bought
a product or service within the past 12 months
using some kind of digital payment.
1
The second part of the report draws from a survey
of 150 institutional investors and corporate
treasury management respondents conducted
in January and February 2022. About a third of
respondents are North America-based with the
remainder spread across Australia, China, France,
Germany, India, Singapore and the UK. All survey
takers were familiar with their organisation’s
investment decision-making processes.
Complete demographics can be found in
the appendix.
The following experts gave their perspectives
for the report:
• Tobias Adrian, financial counsellor and
director of the Monetary and Capital Markets
Department, International Monetary Fund
• John Mitchell, CEO and co-founder,
Episode Six
We would like to thank all interviewees and
survey respondents for their time and insight.
This report is written based on two surveys
conducted in January and February 2022—
one of 3,000 consumers and the other of
150 institutional investors and corporate
treasury management respondents.
© The Economist Group 2022
Digimentality 2022: Fear and favouring of digital currency
Introduction
Digital payments—ranging from credit cards
and payment apps to cryptocurrencies and
central bank digital currencies (CBDCs)—are
at a crossroads. In Sweden, the Central Bank
2021 Payments report noted that the use of
cash has now fallen below 10% (as measured
by the last transaction made).1 The report also
noted that the pandemic has spurred the use of
digital options – echoing a key finding from the
2021 survey conducted as part of this research
program. “There’s a need to move towards a
cashless society and I think we saw some of that
during the height of the pandemic,” says John
Mitchell, CEO and co-founder of Episode Six, a
payments company. “The convenience, speed
of transactions, inclusion and efficiencies are all
reasons for this.”
A wide range of countries are considering the
introduction of CBDCs to promote a cashless
society. Cryptocurrencies have also been
adopted as legal tender in El Salvador and the
Central African Republic. At the same time,
the move towards digital payments faces
challenges. In the consumer survey conducted
for this report, there is an uptick in the trust for
cash. Many governments have also moved to
1 https://www.riksbank.se/en-gb/payments--cash/payments-in-sweden/payments-report-2021/2.-safety-and-efficiency/
2 https://www.cliffordchance.com/insights/resources/hubs-and-toolkits/talking-tech/en/articles/2022/05/global-crypto-round-up-may-2022.html
3 https://www.secretservice.gov/newsroom/releases/2022/02/us-secret-service-launches-cryptocurrency-awareness-hub
2
regulate cryptocurrencies. In Asia, for example,
the regulatory landscape is complex and varies
from jurisdiction to jurisdiction, and continues
to evolve, impacting the use of cryptocurrencies.
In the month of April 2022 alone, Australia,
China, Hong Kong, India, Singapore and the
Philippines saw regulatory developments around
crypto assets.2 In the United States, meanwhile,
the Secret Service launched a cryptocurrency
awareness hub in February 2022 to raise
understanding of their usage.3
“The shift towards digital assets requires a shift
in technology,” explains Mr Mitchell, whose
company provides clients with the ability to put
together products that allow their customers
to pay with any asset anywhere. “The future is
extraordinarily bright.” This seems clear from
the survey findings, which indicate there is a
better understanding of digital assets and greater
optimism around their use.
The use of digital payments from a consumer
perspective is also the focus of the first part
of this report. It compares the attitudes of
consumers with similar surveys conducted in
2020 and 2021 to identify trends to what extent
© The Economist Group 2022
Digimentality 2022: Fear and favouring of digital currency 3

digital payments are trusted by consumers and

what barriers remain towards a cashless society.
The second part of this report compares the
attitudes of institutional investors and corporate
treasurers to identify their view of digital
payments and assets, and compares the results
to a similar survey conducted in 2021.

Defining digital payments

For the purposes of this report, we use the
term “digital payment” to include any and all
of the following:

• Online banking (direct payments from a bank

account to a person or business via electronic
means instead of a paper cheque)

• Mobile payment or e-wallet (typically via

smartphone, including WeChat pay, Alipay,
Google Pay, Apple Pay, etc.)

• Online money transfer services (PayPal,

Venmo, TransferWise, etc.)

• Open source (non-bank) digital currencies

(which include but are not limited to
cryptocurrencies such as Bitcoin, Ethereum,
Litecoin, etc.)

• Central bank digital currencies (CBDC)

involving digital currency issued as legal tender
by a central bank (such as the Chinese digital
yuan or the Swedish e-krona)

• Corporate-issued digital currencies

introduced (sometimes called a “Permissioned
blockchain”, such as but not limited to JP
Morgan’s JPM coin)

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 4

“There’s a need to move towards a

cashless society and I think we saw
some of that during the height of
the pandemic. The convenience,
speed of transactions, inclusion and
efficiencies are all reasons for this.”

John Mitchell
CEO and co-founder
of Episode Six

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 5

Part I: A shifting
landscape

CBDCs are now favoured by 14% of people, a big
increase from 4% in 2021. Perhaps as a result, about
one-third of consumers expect their government
or central bank to launch a CBDC within the next
three years (37%) and/or make cryptocurrency
legal tender (37%). More than 60 central banks
are at different stages of CBDC development
with China and Sweden having started live pilots,
according to the 2021 CBDC Global Index from
PwC, a professional services firm.4
“It’s natural for physical cash to be
complemented by digital cash as the world
is becoming more digital and it’s a natural
evolution,” says Tobias Adrian, financial
counsellor and director of the Monetary and
Capital Markets Department of the International
Monetary Fund (IMF). “It might not be used
much but in principle, being possible to convert
into central bank digital currency might be an
important anchor for the digital economy.”

Figure 1: Changing consumer expectations

To what extent do you agree or disagree that the following developments will occur within the next three years?

Strongly agree/Somewhat agree Neither agree nor disagree Somewhat disagree/Strongly disagree Don’t know

I expect my country’s government or central bank to issue a CBDC (central bank digital currency)

36.5% 43.4% 18.6% 1.5%

I expect my country’s government or central bank to officially make Bitcoin or other cryptocurrencies legal tender for transactions in my country

36.6% 43.5% 17.9%

1.9%

I expect to buy, hold or sell non-fungible tokens (NFTs)

60.1% 28.3% 7.5% 4.1%

I expect to use applications of decentralized finance (DeFi) for personal or professional financial transactions

34.2% 44.2% 17.2% 4.4%

Source: Economist Impact

4 https://www.pwc.com/us/en/financial-services/regulatory-services/publications/assets/evolution-of-money-CBDCs.pdf
© The Economist Group 2022
Digimentality 2022: Fear and favouring of digital currency 6

Meanwhile, the use of physical credit or debit

cards has dwindled. Only 8% of consumers say
they always use them, compared with
about one-third (31%) in 2021 and 26% in
2020. Instead, online banking (22%) is the most
preferred digital option among respondents
(same as in 2021, and up from 19% a year
earlier). The use of cryptocurrencies, such as
Bitcoin, Ethereum and Litecoin, among others,
remains steady at about 4% of people who
always use them (compared with 4% and 5%
in recent years).

Some ways to go
Cash remains king when it comes to trust.
Eight in ten (85%) of respondents consider
cash to be trustworthy as a method of payment,
slightly up from last year (83%). “Different
countries have different cultures,” says Mr Adrian
about the hesitation to use digital payments
across the world. “Stability and the acceptability
as a means of payment, of course, are very
important as well.”
In the past 12 months, 24% of survey takers
reported that they always used digital payments
instead of physical banknotes, coins or credit
cards. Another 4 in 10 (36%) said they used
digital payments often (at least 50% of their
purchases). This is in line with the previous
two surveys where the equivalent figures
were 27% and 41% respectively (2021) and
22% and 42% (2020).

Figure 2: Use of digital payments challenges cash

Within the past 12 months, how often have you typically used digital payments instead of physical banknotes, coins or
credit cards?

14.3%
23.8%
Always (as close to 100% of purchases as possible)
Often (at least 50% of my purchases)
26.2% Sometimes (less than 50% of purchases but greater than 10%)
Rarely (less than 10% of purchases)

35.6%

Source: Economist Impact

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 7

Cryptocurrencies continue to be the most
common form of digital payment (used by 13%
of survey takers), followed by a digital currency
issued by technology and financial firms (12%),
and a government issued digital currency
(9%), which is largely similar to year-over-year
comparisons. All survey takers had made a
payment for a product or service over the past
12 months using any kind of digital payment,
with one-half being from developed countries
and one-half representing developing countries.
Future expectations
Eighteen percent of respondents say the country
in which they live will become cashless (defined
as predominantly using digital instead of physical
payment methods) in the next year or two,
compared with 17% in 2021 and 14% a year
earlier. Indicative of this trend, only 13% now
say their country will never become cashless
compared with one-fifth (19%) in 2021 and
one-third (28%) who said the same in 2020. “It’s a
societal move to digital everything,” explains Mr
Mitchell. “There will be new ways to transact that
we aren’t talking about today, and that evolution
in payments and finance will continue.”
Among those who believe their country will
become cashless, government and the public
sector is seen as the biggest influence moving
forward (49% compared with 27% in 2021),
echoing the finding in the institutional survey
that regulations play an increasing role towards
acceptance and adoption. Indeed, government
regulations (27%) are seen as the main barrier
towards their country becoming cashless by
survey takers, up from 20% in 2021, while habits
with physical cash (23%) has dwindled on the list
of obstacles (previously cited by 40%).

Figure 3: Going cashless soon…

Do you believe the country in which you live will become “cashless” (predominantly using digital instead of physical
payment methods)?

Yes, it is already cashless

3%

Yes, it will become cashless in the next year or two

18%

Yes, it will become cashless over the next 3 to 5 years

47%

Yes, it will become cashless but not for five years or more

18%

No, my country will never become fully cashless

13%

Don’t know

1%

Source: Economist Impact

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 8

Figure 4: … but barriers remain

What do you see as the major barriers to your country becoming “cashless”? If your country is already cashless, please
base your answers on barriers experienced before it became cashless. Please select up to three.

Government regulations

27%

Low consumer acceptance

25%

Low business acceptance

24%
Lack of understanding of the technology

23%

Habits with physical cash are too strong

23%

Unable to pay small transactions, no relevance to daily life

22%

Data privacy concerns

22%

Ease of use is inadequate

20%

Unproven technology

20%

Don’t know

0.4%

Source: Economist Impact

“Many bodies that are handling the regulatory
concerns might not be up to speed on the
technology,” says Mr Mitchell. “And if one
doesn’t understand the technology, it will be
quite difficult to regulate it in an appropriate,
efficient and successful way.” For consumers,
the main impacts are practical challenges. It is
hard to regulate crypto assets, but Mr Adrian
says “what can be regulated are entry points
and exit points.”

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 9

Moving forward
The biggest barriers towards greater adoption
are similar across the different types of digital
currencies available with small nuances. For
open-source digital currencies (such as but not
limited to Bitcoin) the lack of knowledge has
plummeted from 51% to 22% year-over-year
according to survey takers. Instead, the main
obstacle is now viewed as the need for a secure
form of digital personal ID, which does not yet
exist (cited by 24.3% compared with 13% in 2021).

Figure 5: Biggest barriers to greater adoption of open-source digital currencies

In your opinion, what are the biggest barriers to the greater adoption of open-source digital currencies in your country?
Please select up to three.
2022 2021

Use of digital currencies is not well understood

22%
51%
The technology is not secure
20%
34%
It is difficult to know where to buy digital currencies
23%
29%
The procedure to buy digital currencies is too complicated
24%
26%
There is no intrinsic value behind digital currencies
22%
26%
They are mostly used for fraudulent or illegal transactions
24%
24%
There are too few options to use open source digital currencies
24%
20%
It requires a secure form of personal digital ID, which doesn’t yet exist
24%
13%
It is illegal to purchase some digital currencies in my country
23%
8%
Don’t know
1%
9%

Source: Economist Impact

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 10

“What can be regulated

are the entry points
and exit points.”

Tobias Adrian,
Financial counsellor and
director of the Monetary and
Capital Markets Department,
International Monetary Fund

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 11

Greater adoption of CBDCs continues to be
hampered by a lack of education (27%), technical
literacy (27%), as well as unequal access (27%),
the latter which has risen in importance year-
over-year (20%).
Corporate-issued digital currencies primarily
suffer from a lack of technical literacy (26%), a
small increase from 2021 (24%).
Meanwhile, non-fungible tokens (NFTs), are a
rising star—trailing only cash—with two-thirds
(65%) saying they are trustworthy, supporting
the institutional survey finding that companies
are increasingly exploring their use. In fact,
60% of survey takers expect to buy, hold, or sell
NFTs within the next three years. “We want to
be associated with the future,” says Mr Mitchell.
“We’re working on the ability to use NFTs as a
payment system [in addition to cryptocurrencies].”
An NFT (a piece of art, for instance) can be
used for payment by converting the asset into
something else, such as the US dollar.

Figure 6: Education, access and tech literacy key barriers in CBDC adoption
In your opinion what are the biggest barriers to the greater adoption of CBDCs or corporate-issued digital currencies in
your country. Please select all that apply.

Technical literacy (use/function of digital currencies not well-understood in the general populace)

27%
Lack of education (general literacy in the populace prevents people from using digital technology)

27%
Unequal access (technology/devices required are too expensive or otherwise unavailable to sections of society)

27%
The procedure to exchange/store/use is too complicated for large parts of the population

25%
It requires a secure form of personal digital ID, which doesn’t yet exist

23%
There are too few options/places to use or spend it

18%
People will not trust that the technology is secure

18%
Concerns over privacy

16%
Don’t know

1%

Source: Economist Impact

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 12

“You don’t want to kill

innovation with regulation.
But on the other hand, innovation
can only have the full amount
of trust if it’s well regulated.”
Tobias Adrian,
Financial counsellor and
director of the Monetary and
Capital Markets Department,
International Monetary Fund

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 13

Part II: Green light

from investors?

Executives increasingly believe CBDCs are
likely to replace physical currency in their
country: almost two-thirds (65%) say this
will be the case compared with about one-half
(56%) last year.
The pace is also predicted to increase. Seven
in ten (70%) now say it will happen within a
decade, compared to six in ten (58%) a year
ago. All survey takers were familiar with their
organisation’s investment decision-making
process with one-half being institutional
investors and one-half representing for-
profit corporations.
More than nine in ten (93%) now say they agree
that issuance of central bank digital currencies
(CBDCs) is necessary to establish a functioning
market for new financial instruments such as digital
bonds or other forms of digital assets, up from
eight in ten (78%) a year ago. A significant majority
of respondents (82%) say the establishment of
CBDCs will increase general demand for other
forms of digital currencies and assets that are not
government backed. “I would imagine that there’s
a coexistence between CBDCs, which is the liability
of the central bank, and stablecoins [such as USDC
and USDT], which could be backed, for example, by
interest-bearing deposits,” says Mr Adrian.

Figure 7: More optimism around the use of CBDCs

In your opinion, are CBDCs likely to replace physical currency in your country?

2022 2021

Yes
65%
56%
No
33%
34%
Don’t know
3%
11%

Source: Economist Impact

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 14

Evolution leads to new barriers

Regulations have become the primary obstacle
to greater institutional investor or corporate
treasury use of open source digital currencies
and are cited by about four in ten (41%)
compared with one in three (32%) a year ago.
Conversely, market trust or understanding of
digital currencies/assets is now considered an
obstacle by only 35% of institutions, down from
47% a year ago.

Figure 8: Regulations the primary barrier

In your opinion, which best describes the primary obstacles to greater institutional investor or corporate treasury use of open
source digital currencies? Please select up to three.

2022 2021

Market trust or understanding of digital currencies/assets

35%
47%
Financial market structures
41%
43%
Asset volatility
39%
36%
Regulations
41%
32%
Internal technological challenges
20%
32%
Lack of related digital financial services (exchange, custody, etc)
34%
27%
A lack of corporate support (buyers)
27%
24%
Insufficient interoperability
23%
19%

Source: Economist Impact

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 15

“The private sector is very important in terms

of innovating around digital money and I don’t
think the central bank should be in the business
of necessarily defining the technological frontier
of payment systems,” says Mr Adrian. “You don’t
want to kill innovation with regulation. But on
the other hand, innovation can only have the full
amount of trust if it’s well regulated.”

A little over two in three survey takers (68%)

say an open source (non-bank) digital currency,
where no dedicated intermediary organisation or
sovereign government controls supply, presents
relatively greater risk as an asset in a portfolio or
treasury account as compared to other currency
holdings, down from 72% a year earlier.

This is a slight improvement in perception.

“There has to be some degree of investor
protection and consumer protection,” explains
Mr Adrian. “In addition to some degree of
disclosure, resilience, identity and integrity to
make sure that transactions are conforming to
sanctions and the rule of law.”

Wider adoption/acceptance of CBDCs (33%)

continues to be the main trigger towards
portfolio/treasury activity in open source
digital currencies (31% last year). “We’re going
to see the adoption of these digital currencies
and the creation of CBDCs,” predicts Mr Mitchell.
“The improvement of the technology that’s
required to support all of this continues to
evolve and mature.”

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 16

“We’re going to see the adoption of

these digital currencies and the
creation of CBDCs. The improvement
of the technology that’s required
to support all of this continues to
evolve and mature.”

John Mitchell
CEO and co-founder
of Episode Six

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 17

A changing portfolio outlook

Investors agree there is a need for open source
digital currencies (85% compared to 80% last
year), CBDCs (86% vs 77%) or corporate-issued
digital currencies (88% vs 76%) as a diversifier
in a portfolio or treasury account. Additionally,
almost nine in ten (87%) respondents believe
there is a need for an international institution-
only digital currency exchange platform (such
as with the Bank of International Settlements).

Figure 9: The usefulness of digital currencies is not in doubt

To what extent do you agree or disagree with the following statements?

Agree Disagree Neither agree nor disagree / Don’t know

Open source digital currencies are useful as a diversifier in a portfolio or treasury account

85.3% 3.3% 11.3%

Central bank digital currencies are useful as a diversifier in a portfolio or treasury account

86.0% 4.7% 9.3%

Corporate-issued digital currencies are useful as a diversifier in a portfolio or treasury account

88.0% 4.0% 8.0%

There is a need for an international institutional-only digital currency exchange platform (such as with the Bank of International Settlements)

86.7% 4.7% 8.7%

Source: Economist Impact

Survey takers are divided about whether
open source (non-bank) digital currencies
(cryptocurrencies such as but not limited
to Bitcoin) should be considered strictly as
a currency for settling transactions or as an
asset for storing/appreciating value: About
four in ten (41%) view it as a regular currency,
a rise from 34% last year at the expense of
being seen as an asset (23%), down from 31%,
while a combination of both (30%) has held
fairly steady year-over-year (27%).
The primary roles of open source digital
currencies/assets within a portfolio or treasury
account have shifted year-over-year with
alternative asset diversification (33% vs 31%)
moving into first place. Capital appreciation (29%
vs 33%) has fallen to the second highest-rated
answer together with monetary transfers for
large settlements, a hedge against inflation, F/X
or currency exchange, and capital appreciation
(all 29%). Pure speculation (23% vs 21%) remains
among the lowest-selected options, indicating
continued maturity in the market.

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency
The next phase
Almost nine in ten institutional investors and
corporate treasury survey takers agree that
consumer demand for all digital currencies
(CBDC, open source or corporate-issued) has
increased in their country over the past three
years (87% vs 76%), a significant increase year-
over-year. This may be intensified by the move
Figure 10: Optimism around CBDCs
To what extent do you agree or disagree with the following statements?
Agree Disagree Neither agree nor disagree / Don’t know
Infrastructure for digital currencies/assets (e.g. trading, custody services) has improved in the past three years in my country
Government regulatory framework on digital currencies has improved in the past three years in my country
In my country, digital currencies are seen as an investment rather than a method of payment
Consumer demand for digital currencies (CBDC, open source or corporate issued) has increased in my country over the past 3 years
Greater international interoperability is needed to legitimize central bank digital currencies
NFTs (Non-fungible tokens) are an asset class my organisation plans to or currently holds or trades
Source: Economist Impact
“I think the rise of the metaverse and the
desire to be able to transact within the
metaverse by default will increase demand
and will provide a showcase for NFTs,” says
Mr Mitchell. In 2021, the NFT marketplace
5 https://www.ft.com/content/50fbe9ba-32c8-4caf-a34e-234031019371
6 https://www.economist.com/films/2022/02/03/are-nfts-worth-the-hype
18
to the metaverse, a digital world. Recent reports
indicate that Meta, the owner of Facebook,
plans to introduce virtual payments, including
for NFTs.5 In the survey conducted for this
report, NFTs are also seen as an emerging asset
class that organisations plan to or currently hold
or trade (74%).
86.7% 2.7% 10.7%
73.3% 10.7% 16.0%
80.0% 8.0% 12.0%
86.7% 4.7% 8.7%
83.3% 4.0% 12.7%
74.0% 12.7% 13.3%
surpassed US$40bn in transactions in 2021.6
“I think it is more speculative as well,” warns
Mr Adrian. “It could be a good investment but
it’s generally unpredictable,” and draws the
comparison to art as an investment object.
© The Economist Group 2022
Digimentality 2022: Fear and favouring of digital currency 19

Conclusion

“We accommodate units of value on our “I do think we will have a sound global regulatory
platform and allow for the conversions of these framework for crypto assets or service providers
units of value to be made whether it is digital first to crypto assets,” says Mr Adrian. “We will have
currency or anything that you can ascribe a value central bank digital currencies that are more
to that we can hold, convert and allow,” says widespread and I think the payment systems
Mr Mitchell, illustrating the move towards new across borders are going to be upgraded in a
assets such as NFTs in the future. substantial fashion,” and predicts these three
things will happen over the next five years.
There’s a clear acknowledgement that digital
assets have become a global issue that needs
to be resolved at the global level, indicated by
regulations (or lack thereof) rising to the top
of the main barriers towards their use amongst
both consumers and investors in the
surveys conducted for this report.

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 20

Key takeaways

• The move towards a cashless society—ranging from credit cards and payment apps to
cryptocurrencies and CBDCs—is at a crossroads, and varies greatly between countries. In the
short term, this move is also influenced by fluctuations in market sentiment, such as those
witnessed in April and May 2022.

• Desire for CBDCs is accelerating among consumers and many expect their government
or central bank to launch one within the next three years. At the same time, executives
increasingly believe CBDCs are likely to replace physical fiat currency in their countries.

• Government regulations (or a lack of regulatory frameworks) are seen as the main barrier
towards a cashless society by both consumers, and institutional investors and corporate
treasurers. There are clear signs this is changing, with frameworks, approaches, laws and pilot
projects being introduced in several countries globally.

• Institutional investors and corporate treasurers increasingly agree there is a need for open
source digital currencies, CBDCs or corporate-issued digital currencies as a diversifier in a
portfolio or treasury account.

• Consumer demand for all digital currencies is expected to increase, according to institutional
investors and corporate treasurers. This may be intensified by the move to the metaverse, and in
particular the rise of NFTs.

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 21

Appendix 1: Consumer
survey demographics

Unless otherwise specified, all answers represent the percentage of total survey respondents.

D1. In what country are you personally located? Select one.

Australia 7%

Brazil 10%

France 8%

Philippines 10%

Singapore 7%

South Africa 10%

South Korea 7%

Turkey 10%

United Kingdom 10%

United States of America 12%

Vietnam 10%

D2. In what year were you born? Select one.

GenZ/Millennials 67%

Gen X/Baby Boomers/ Silent generation 33%

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 22

D3. Which best represents your gender? Select one.

Male 53%

Female 47%

D4. Is your annual salary above or below your country’s median income?

Above median income 52%

Below median income 46%

Unsure / Do not care to respond 2%

D5. Which of the following best describes your educational background?

Please select one.

University graduate (BA, BS, etc) 39%

Master's or other professional degree (MS, JD, MBA, etc.) 28%

Vocational/Technical School 15%

High School, secondary or equivalent 9%

Professional doctorate (PhD, EdD, DSc, etc.) 8%

Do not care to respond 1%

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 23

Appendix 2: Institutional
survey demographics

Unless otherwise specified, all answers represent the percentage of total survey respondents.

D1. In which region are you personally based?

North America 33%

Europe 33%

Asia-Pacific 33%

D2. What is your organisation’s primary sector?

For-profit companies 50%

Institutional investors 50%

D3. If you work for an institutional investor, which of the following most closely describes
the organisation you currently work for?

Investment bank 52%

Asset management 28%

Insurance company 9%

Commercial bank 8%

Endowment fund 1%

Family office 1%

© The Economist Group 2022

Digimentality 2022: Fear and favouring of digital currency 24

While every effort has been taken to verify the accuracy of this information,
Economist Impact cannot accept any responsibility or liability for reliance by
any person on this report or any of the information, opinions or conclusions
set out in this report. The findings and views expressed in the report do not
necessarily reflect the views of the sponsor.

© The Economist Group 2022

DIGITAL TRANSFORMATION COMMUNITY - Chuyển đổi số Việt Nam