The Central Bank of Canada is considering digital currency

The central bank of Canada is considering the option of launching a digital currency, according to an internal presentation obtained by the Financial Post.

Contents hide

1 The project proposes

2 Canada is not the only country where digital currency is proposed!

2.1 Related posts:

The Governor of Bank of Canada presented a research project that will last two years and will study the possibility of issuing its own digital currency. According to the presentation, it would offer “all the benefits” of the assets guaranteed by central banks and “all the convenience and security of wireless electronic payments”.

The project proposes

The presentation of the project lists over ten benefits of a digital currency issued by the central bank and only one disadvantage.

“An additional payment method could make the payment system more robust, but digital currency also presents a risk for stable and low-cost financing systems for (banks) (deposits).”

The Central Bank of Canada suggests that a digital currency could come with the option to pay interest on the balance. He also mentioned the possibility of collecting more information about the currency in which Canadians use the money. The use of cash reduces this possibility at present, but the popularity of ballot cash is declining.

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Canada is not the only country where digital currency is proposed!

In October 2018, the Financial Stability Committee of Canada released a report on how cryptocurrencies could destabilize the global financial system. Since launching the report, Facebook has announced plans for the Libra, and China is ready to launch its own currency. Last week, the central bank of Switzerland began to explore the use of digital currencies for trading.

Sweden and Singapore both have ongoing research efforts, and similar ideas are being analyzed by the Federal Reserve.

“We need to innovate to stay in the game,” the presentation states. “Cryptocurrencies can become a direct threat to our ability to implement monetary policy and the role of the central bank of last resort lender (LOLR).”