Canada Becomes Latest Country to Pursue Digital Dollar Conversation
The Bank of Canada doesn’t see a need for a digital dollar just yet, but it acknowledged that Canada may need to implement one in the future
Canadian Prime Minister Justin Trudeau | Art Babych/Shutterstock modified by Blockworks
Canada is the latest country to start the central bank digital currency conversation.
The Bank of Canada is asking for public feedback on a digital dollar.
According to a press release from the bank, Canadians have until June 19 to weigh in on how a digital dollar would be used, what security features should be implemented and concerns that citizens may have around the issuance of a CBDC.
The Bank of Canada said the aim of the digital dollar would be to “complement cash, not replace it.”
While the bank does not see a need for a CBDC “right now,” it acknowledged that Canada may need to implement one in the future, so the bank — in actions similar to other countries’ financial institutions — wants to “get ready.”
In 2021, the Bank of Canada said that there wasn’t a “strong case” for a CBDC yet.
However, conversations around CBDC have become more popular, with CBDCs even becoming a campaign topic in the US.
Elsewhere in the world, Israel wants to see “significant” stablecoin use before it considers implementing a digital shekel.
The Bank of England, however, is looking to build a digital pound, which could be implemented as soon as “the second half of the decade.” if there is a decision made to formally pursue a CBDC, according to Jon Cunliffe, the deputy governor for financial stability at the Bank of England.
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