Bank of Canada getting ready for digital currency

Even though the bank of Canada has no plans for issuing a digital currency immediately, the central bank isn’t ruling out launching one because of capacity big adoption of personal digital currencies — and cashless societies if possible.

Bank of Canada deputy governor Tim lane tell at fintech rdv 2020, and said that despite the fact that at the moment there’s “not a compelling case” for a central bank digital currency (cbdc), a prototype is at the way and the bank plans to discuss with an extensive range of stakeholders to probably lay out a central bank digital currency.

“the bank of Canada could layout is to offer the advantages of cash—secure, easy to access, private and an excellent store of value—however in a virtual model that clients could use to shop for matters electronically online or in individual at a store.”

The bank sees the cryptocurrencies as threats to the Canadian dollar. Lane added that: 

“if one or extra alternative digital currencies threatened to turn out to be used extensively as an opportunity to the Canadian dollar, then a central bank-issued digital currency could be used to defend monetary sovereignty.” 

Central banks are more and more looking into digital currency

The bank for worldwide settlements has found a growing quantity of central banks is probably to issue their very own digital currencies within the following couple of years. While lots of launching pilot projects are rising economies, China is closest to issuing a digital currency. Cointelegraph recently mentioned that Sweden has all started trialing a digital e krona.

Cointelegraph additionally stated that a prime Canada based digital trade platform, Shopify, could be a part of facebook’s libra association. Libra was officially introduced in June 2019. It has triggered worldwide regulatory concerns ever since its appearance.

A few countries have started to look into reconsidering the united states dollar because the dominant global currency and banks have admitted that facebook’s libra driven central banks to significantly check out digital currency initiatives to update cash. 

But, the bank of Canada was quick to reassure Canadians that their cash could not turn out to be obsolete soon:

“the bank of Canada will make sure bank notes are available to Canadians who need to use them,” stated lane deputy governor.