Canada’s apex bank is now slowly moving to the crypto side and is more open to the possibility of a national digital currency. The Bank of Canada isn’t exactly planning to develop or issue one. However, it is embracing the possibility of doing so in the future.
Speaking at the FinTech RDV 2020 which recently took place in Montreal, the apex bank’s Deputy Governor Tim Lane said that the institution is considering a prototype. Lane also said that the Bank of Canada will consult with quite a few potential collaborators to work on the design and development of its own central bank digital currency (CBDC). Regardless, he said there is “not a compelling case” for a CBDC at the moment.
He spoke on the benefits of a Canadian CBDC and what it could potentially do for citizens.
“The Bank of Canada would design it to provide the benefits of cash – safe, easy to access, private and a good store of value – but in a digital version that consumers could use to buy things electronically online or in person at a shop.”
He also added that the CBDC will help maintain Canada’s “monetary sovereignty” especially if other cryptocurrencies increase in general adoption, an occurrence that could threaten the Canadian dollar.
Sweden has gone a bit further and has begun a pilot test of its e-Krona CBDC.