Lawrence Damilola
The Bank of Canada has announced that it is scaling down its efforts to develop a retail central bank digital currency (CBDC).
In a document titled “Digital Canadian Dollar,” it stated, “With this work completed, and with other payments issues gaining prominence, the Bank is scaling down its work on a retail central bank digital currency and shifting its focus to broader payments system research and policy development.”
Though the Bank has piped down on the retail CBDC project, it remains unclear if the idea has been fully shelved. It confirmed that it will continue to track developments in global retail CBDC and come up with more research and studies on the subject.
“There will be further opportunities for Canadians to provide input on a potential digital dollar,” it said. It also emphasized that the research completed thus far will be invaluable in the future should Canadians decide to pursue a digital dollar.
The Bank of Canada’s decision follows a public consultation held in 2023, during which it received nearly 90,000 responses. Many of the responses highlighted concerns about privacy regarding the introduction of a CBDC. The Bank said it considered these concerns as it reevaluated its approach to the project.
The Bank of Canada’s latest announcement comes as debates over CBDCs unfold in other countries. For example, U.S. Federal Reserve Chairman Jerome Powell recently stated that the U.S. was “nowhere near recommending” the adoption of a CBDC, adding that “people don’t need to worry about it.”
In July 2024, the Bank of Canada published a staff discussion paper indicating that as cash use declines, a “properly designed CBDC would help fill the gap” and maintain the relevance of public money in the economy.
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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
