In the latest, the central bank of Canada CBDC or central bank digital currency is under consideration by the bank and government.
Per the latest presentation obtained by Financial Post, Canada’s central bank, the Bank of Canada has been examining the possibilities of digital currency issuance.
The central bank of Canada CBDC
The presentation was delivered as the research project of a two-year in which it was presented that either the Bank of Canada should consider issuing its digital currency.
Per the research presentation, a digital currency that would be issued by a central bank would likely extend all the advantages that the assets that are backed by central bank offers, along with all the ease of electronic payments and wireless security. This research project presentation was demonstrated to Bank of Canada’s governor Stephen Poloz.
It was stated in the presentation that there is a need to be innovative, in order to remain part of the game. Moreover, it was stated that the cryptocurrencies might be becoming a threat to the current ability to execute monetary policy and the role of Lender of Last Resort (LOLR).
Lastly, this proposed digital currency can also enable the authorities in the collection of information. As per the presentation, while not sharing personal information with the payee, it could be shared with law enforcing agencies or the tax authorities.
Canda now joins the list of countries including China that is looking to break past the conventional system and ensure that the countries economy through a central bank digital currency.