As a seasoned researcher with a keen interest in digital currencies and central banking trends, I find myself intrigued by Canada’s decision to pause its exploration of a government-backed digital currency, or CBDC. Having closely followed the global push for CBDCs, it seems that Canada is taking a cautious approach amidst this rapidly evolving landscape.
According to reports, it appears that the Bank of Canada is no longer actively considering the concept of launching a digital version of the Canadian dollar.
It appears that the Bank of Canada is moving away from its plans for a government-issued digital currency, which it initially considered seven years ago in response to the increasing digitization of payments. As reported by CBC News, the Canadian central bank seems less interested in the concept of a digital Loonie.
At the moment, the Bank of Canada hasn’t issued any public comments about whether it’s temporarily halting its work on creating a digital currency. However, speaking to CBC News, a representative for the central bank acknowledged that they have been conducting in-depth research into the potential effects of a retail central bank digital currency.
Instead, let me rephrase it: The bank opted to focus on studying payment system trends within Canada and internationally, as indicated in the report. This decision follows the revelation by the think tank Atlantic Council that 134 countries, accounting for 98% of the global economy, are investigating digital currencies. Among these nations, 44 are actively testing central bank digital currencies.
Canada takes pause amid global push for CBDC
It’s worth noting that more than 65 countries, which include India, Australia, and Brazil, among others, are actively delving into Central Bank Digital Currencies (CBDC). These nations are either developing, testing, or have already launched their own CBDC projects. Interestingly, every G20 nation is currently examining the potential of a CBDC for themselves. Specifically, 19 of these countries are in advanced stages of exploration, according to a research organization.
Towards the middle of August, Pierre Poilievre, leader of the Conservative Party in Canada, firmly spoke against the creation of a digital currency by the central bank within Canada. He vowed to preserve cash usage and resist any efforts from the government towards digitalizing the economy. Moreover, he showed his backing for Bill C-400 proposed by Ted Falk, a member of the Canadian House of Commons, which aims to prohibit the introduction of such a digital currency.
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2024-09-19 10:18