Bank of Canada: We Don’t Need a Digital Dollar Now

Reading Time: < 1 minute

Canadian central bank Bank of Canada sees no real reason to issue a central bank digital currency (CBDC) at the moment.

According to Reuters, the deputy governor of the regulator, Timothy Lane, has said while speaking about CBDC issues on a panel held yesterday that the bank has not found any solid case that would justify the issuance of a digital dollar at the moment. He said:

“In terms of where we are with the project, we don’t currently see a strong case for issuing it, but the world is progressing very rapidly and probably even more so in the wake of the pandemic.”

Apart for concluding there is not a real need to issue a digital currency, the bank has previously mentioned some of the risks associated to this type of asset.

In a report released in October last year, the regulator talked about the threats associated to CBDCs in relation to their storage. In addition, the bank pointed to a potential competition between cryptocurrency exchanges and banks when attracting users.

If you like our content and want to support us, please follow us on X, Facebook and Instagram and don’t miss the latest news!