Bank of Canada: No Strong Case for CBDC Right Now

“We don’t currently see a strong case for issuing it, but the world is progressing very rapidly and probably even more so in the wake of the pandemic,” Deputy Governor Timothy Lane said in a panel Wednesday.

share

key takeaways

  • Lane said that while the Bank of Canada is not ready to pull the trigger, they understand that the world is moving toward digital transactions
  • A Canadian CBDC also has the potential to operate more efficiently than other cryptocurrencies, Lane said

As the People’s Bank of China preps to debut the eCNY, the Bank of Canada does not seem to be in any rush to deploy a central bank digital currency, according to one deputy governor. 

“We don’t currently see a strong case for issuing it, but the world is progressing very rapidly and probably even more so in the wake of the pandemic,” Deputy Governor Timothy Lane said in a panel Wednesday.

Lane said that while the Bank of Canada is not ready to pull the trigger, they understand that the world is moving toward digital transactions. 

“One of the things we’ve been keeping an eye on is the declining use of use of cash and use of banknotes in Canada,” Lane said. “Where it could start to become a problem is if we actually hit a tipping point where people who are reliant on cash, because they don’t have good bank accounts or they live in remote areas, or very poor people that are homeless, and so on, those people could be completely frozen out of the economy if their only available means of payment becomes no longer widely accepted.” 

Lane said that he believes there is a high level of trust in the Bank of Canada, as demonstrated by the wide use of banks. 

“We’ve seen with cryptocurrencies the use of the blockchain… was really to deal with a situation where you’re not relying on any third party to establish trust,” said Lane. “But with a central bank digital currency, if you don’t trust the central bank, then we’re out of that game.” 

A Canadian CBDC also has the potential to operate more efficiently than other cryptocurrencies, Lane said, pointing to the growing public concern over bitcoin’s energy usage

“When we think about a central bank digital currency, trust is an important thing we’re bringing to the table,” said Lane. “That, of course, means that we wouldn’t have to rely on those environmentally very wasteful methods of mining technologies that we’ve seen with cryptocurrencies, and that is certainly a major advantage of a CBDC relative to any other crypto project.”

The Bank of Canada appears to be taking a similar approach to establishing a CBDC as the Federal Reserve, who has signaled that there is no rush to deploy a digital dollar.

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates.png

Research

The convergence of DePIN and energy generation aims to address modern grid challenges by incentivizing distributed generation.

article-image

Blockworks Research uses numbers to help crypto advance to a higher stage of storytelling

article-image

While Arizona’s governor could veto another crypto reserve bill, similar North Carolina and Texas laws are approaching the finish line

article-image

However, they noted there’s now an increased risk that unemployment and inflation will rise in the coming months. 

article-image

The network’s most ambitious upgrade since the Merge brings validator streamlining, smart account UX and doubled blobspace to Ethereum

article-image

Debate over extra Bitcoin use cases has returned, two years on from Ordinals