Central Bank of Canada prepares to issue its own Central Bank backed digital currency

posted 4 months ago
The Central Bank of Canada is preparing for the possibility of issuing it’s own Central Bank backed digital currency. Specifically, Canada’s central bank wants to build the capacity to launch a retail, cash-like digital currency. The central bank identified 2 scenarios that could warrant the launch of its own digital currency. 1st, if the use of physical cash is reduced or eliminated altogether, and 2nd, if private cryptocurrencies were to make "serious inroads."

The 2nd scenario, in particular, could pose an “unacceptable challenge” to Canada’s monetary sovereignty, said Timothy Lane, the Governor of the Bank of Canada, and he went on to say of digital currencies “...transformative technology that affects how the Bank needs to respond to the future of money.” Preparing in advance is, thus, “critical.” The Bank of Canada will consult with “governments and key stakeholders in provinces and territories across Canada” to learn if they want a digital currency and how they want it, Lane said.
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