Bank of Canada could launch a digital currency
The bank officials believe that the potential of private cryptocurrencies could be a threat to the Canadian dollar
The Central Bank of Canada is considering the possibility of launching a digital currency thanks to the possible mass adoption of private cryptocurrencies. Although there is no compelling case to stimulate a Canadian cryptocurrency in the market there is a prototype on the way and the Bank plans to consult with a stakeholders to potentially design this digital project.
The Deputy Governor of the Bank of Canada, Tim Lane, said at the FinTech RDV 2020 conference in Montreal, that the creation of a digital currency would offer “the advantages of safe, easily accessible, private cash and a good store of value, but in a digital version that consumers could use to buy things electronically online or in person at a store.”
Lane also added that: “If one or more alternative digital currencies threatened to be widely used as an alternative to the Canadian dollar, then a digital currency issued by a central bank could be used to defend monetary sovereignty.”
Central banks and digital currencies
The Bank for International Settlements has discovered the possibility that a large number of central credit institutions could issue their own digital currencies in the coming years and according to Cointelegraph Sweden is already testing a digital electronic crown.
The source also reported that an important digital commerce platform based in Canada, called Shopify, would join the Facebook Libra Association. It is presumed that the alliances will stimulate the network-driven currency.