- Canada’s central bank is launching an online public consultation to discuss the features of a potential CBDC
- The Bank of Canada stated earlier today that it is exploring issuing a digital version of Canada’s national currency.
- The central bank clarified that the issuance of CBDCs would not impact the printing of bank notes.
The Banque du Canada (Bank of Canada) is considering issuing its own central bank digital currency (CBDC) to keep up with the growing adoption of crypto assets around the world. The central bank has invited public feedback to determine the features that could be integrated into a digital Canadian dollar.
CBDC Issuance Will Have No Impact On Bank Notes
In a press release earlier today, the Bank of Canada announced that it was launching public consultations on a digital Canadian dollar to explore the design and use cases of a potential CBDC. The consultation opened today and will remain open for public participation until June 19, 2023. The central bank revealed that it was exploring a digital version of the country’s national currency, citing the rapidly evolving payments space around the world.
As Canada’s central bank, we want to make sure everyone can always take part in our country’s economy. That means being ready for whatever the future holds.”
Carolyn Rogers, Senior Deputy Governor, Banque du Canada
The Canadian central bank acknowledged the growing adoption of private cryptocurrencies and central bank digital currencies and the possibility that they may become a popular mode of payment in Canada soon. In order to maintain the status quo and avoid compromising the Canadian dollar’s role as the official and centrally issued currency, the Bank of Canada is considering offering a digital alternative to its citizens.
According to the central bank, a CBDC would ensure that every citizen takes part in the economy. That being said, the Bank of Canada noted the role of banknotes as a safe, accessible, and trusted method of payment. To that end, the bank stated that it would continue offering bank notes to those who prefer them over CBDCs in the future. “Cash isn’t going anywhere,” the central bank added.
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On February 22, 2021, the Bank of Canada, the nation’s central bank, announced a public consultation to receive feedback on its plans for a Central Bank Digital Currency (CBDC). The public consultation was launched on the Bank of Canada’s website and will run until April 16, 2021.
The Bank of Canada has been exploring the concept of a CBDC since 2018 and has previously released a discussion paper outlining key considerations for the development of such a currency. The launch of the public consultation marks an important step in the Bank’s progress towards potentially developing a CBDC of its own.
The consultation will seek feedback from Canadians on the design and implementation of a CBDC, with key questions regarding the purpose and objectives of the currency, its possible use cases, and the roles of the public and private sectors in its development and operation. All feedback received by the Bank will be evaluated and taken into consideration in the Bank’s ongoing research and assessment of a CBDC.
The Bank of Canada has emphasized the importance of developing and implementing a CBDC in a meaningful and responsible manner, with important considerations being given to technological and privacy issues. The consultation seeks to explore these issues, as well as potential social, ethical, and economic implications of a CBDC.
In a statement announcing the consultation, Bank of Canada Governor Tiff Macklem noted, “We are broadening our long-standing engagement with Canadians on a potential digital currency for Canada. As we move further into an increasingly digital world, the Bank sees a role for itself to ensure that Canadians are informed and prepared for the technological changes we are facing.”
The Bank of Canada encourages individuals, businesses, and other interested parties to participate in the consultation by providing their feedback on the potential development of a CBDC. All submissions must be received by April 16, 2021. To learn more about the consultation and to access the consultation document, visit the Bank of Canada’s website.
