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Despite BoC’s efforts to keep abreast of global trends, it is no rush to develop its central bank digital currency CBDC.
The Bank of Canada (BoC) is currently asking Canadians to air their opinions on what the digital Canadian dollar should look like. According to the apex bank, the world is becoming “increasingly digital”, and as such, there’s an immediate need to explore the potential of a digital dollar. To this end, the central bank has started a public consultation that will run from May 8 until June 19.
In a statement, senior deputy governor at BoC Carolyn Rogers shared the importance of the consultation. She says the exercise is vital to how the bank will design the digital dollar, especially as it pertains to security and reliability. Rogers also added that the consultation will help the bank to determine what Canadians value most and how exactly to meet those needs.
No Immediate Plans to Develop Digital Canadian Dollar, Says Bank of Canada
It might be worth mentioning that despite the BoC’s efforts to keep abreast of global trends, it is no rush to develop its central bank digital currency (CBDC). The bank cleared the air on this, adding that no decision had been made yet. Part of the statement reads:
“At this time, a digital Canadian dollar is not needed. And any decision to issue one rests with Parliament and the Government of Canada.”
The bank also confirmed that even when it finally does launch the CBDC, it would not outrightly replace cash. BoC added that physical notes will continually be made available for those who need them.
Meanwhile, a part of the public consultation questionnaire has now hinted at what may be causing the seemingly reluctant approach of the BoC toward developing a CBDC. The questionnaire asks questions relating to Canadians’ preferred payment methods. It also asks if they would love to use the CBDC and how they want it issued. But above all, the questionnaire also asks Canadians to confirm whether or not they have a crypto portfolio.
Interestingly, Canada already admits that at some point, cryptocurrencies or foreign CBDCs will be widely used in the country. However, the BoC also believes that the possibility of that happening is a threat to the physical Canadian dollar. Hence, the reason that the bank is taking all the time it can to develop its CBDC.