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

article-image

Canadian Prime Minister Justin Trudeau | Art Babych/Shutterstock modified by Blockworks

share

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

“It’s also possible that private cryptocurrencies or central bank digital currencies issued by other countries could become widely used in Canada in the future,” the press release states.

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. 

Both North Carolina and Florida banned using CBDCs as money, though the US does not yet have a CBDC. 

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. 

China, however, has rolled out a digital yuan. In February, it announced that government staff in Changshu would be paid in the CBDC.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

Revolut said that the standalone crypto exchange is currently “invite only”

article-image

The stock price jump comes after Coinbase reported ending its seven-quarter run of net losses during the fourth quarter

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders