Canada’s Central Bank: Businesses Will Not Switch to CBDCs

Reading Time: < 1 minute

The Bank of Canada is prepared to introduce its own digital currency if needed, but they believe that currently, most people in the country are not interested in adopting this new form of currency.

According to a recent report, the regulator stated that businesses are unlikely to adopt a digital version of the Canadian dollar.

The anonymity of transactions using digital tokens is a concern for entrepreneurs, and commercial banks are unlikely to lend to businesses that use a central bank digital currency (CBDC) in their operations.

To make the Bank of Canada’s digital currency more appealing, transparency measures will need to be put in place.

The transaction process should be similar to that of plastic cards issued by traditional banks, as stated by the report’s authors.