Central Bank of Canada may launch its national digital currency (CBDC)

The Central Bank of Canada is considering launching a digital currency from the Central Bank (CBDC), which will help it deal with the “direct threat” of cryptocurrencies and collect more information about how people spend their money, The BlockCrypto reports .

Closed Presentation

An internal presentation by the Bank of Canada prepared for the manager Stephen Strip and the board of directors of the bank offers a detailed public view of the bank's views on its own digital coin. According to the presentation, the currency will be widely available and coexist with coins and paper money at the first stage, but in the end it will completely replace them.

The presentation, entitled Central Bank Money: A New Generation, was prepared by Stephen Murchison, Advisor Strip, who was commissioned in September 2018 to conduct a CBDC study.

“We need to innovate in order to stay in the game,” the presentation said. The digital currency will provide “all the benefits” of the assets supported by the central bank, as well as “the convenience and security of wireless electronic payments”. The presentation listed over ten advantages of introducing CBDC, while analysts identified only one drawback.

"An additional payment method can make the payment system more reliable." However, the digital currency "also poses a risk to stable and affordable financing of bank deposits."

Personal data of the payer is not transmitted to the recipient, but can be transferred to the police or tax authorities, stated in the presentation.

Canada is not the only country that studies digital currency. Last week, the central bank of Switzerland, together with the SIX stock exchange, began to study the possibility of using digital currencies. China's central bank is conducting a study CBDC in 2014 and declared its readiness to launch in the near future. Yesterday, the former head of the US CFTC announced the need to introduce a digital dollar to counter China’s expansion in emerging markets.

Publication date 10/18/2019
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