Key Takeaways:
- The Bank of Canada has shifted focus from developing a retail CBDC to broader research on the payments system due to low public demand.
- It remains open to reconsidering a digital Canadian dollar if future demand arises, continuing to monitor global CBDC trends.
- Privacy concerns emerged in public consultations, but past research remains relevant if CBDC interest grows.
The Bank of Canada has shifted its focus from developing a retail central bank digital currency (CBDC) to broader research on the payments system.
After several years of studying the feasibility of a digital Canadian dollar, the Bank has “shelved” the idea, citing a lack of immediate public demand.
The Bank of Canada have abandoned their plans to implement a Central Bank Digital Currency
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However, it remains open to revisiting the concept in the future if needed.
The Bank will continue to monitor global CBDC developments and plans to engage Canadians further on the topic.
While concerns about privacy were raised in a recent public consultation, the research already completed will be valuable if interest in a CBDC grows.
This decision aligns with global debates, particularly in the U.S., where CBDCs have been discussed in the presidential election, though the Federal Reserve has no immediate plans for one.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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