Bank of Canada Drops Plans to Create Digital Currency

September 20, 2024 TruthUSA

The Bank of Canada (BoC) will not be introducing a digital currency any time soon.

After researching and holding public consultations on the idea of a central bank digital currency, the BoC said it will be shifting its focus away from the concept.

“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,” the BoC said on its website. “The Bank will be ready to ensure Canadians always have a safe and secure supply of public money.”

In January, the BoC made moves to trademark Canadian digital currency terms, including “digital dollar,” “digital Canadian dollar,” and “central bank digital currency,” in both English and French.

The bank made the filings in December 2023, under the Trademarks Act.

In November 2023, the BoC said that in its public consultations, 85 percent of Canadians said they would not use a digital Canadian dollar. Another 12 percent said they would “potentially” use it, and 3 percent said they did not know if they would use the digital currency.

A resounding 92 percent said no when asked if there were any circumstances in which they would prefer digital dollars to current payment methods.

Eighty-two percent of those surveyed said they strongly disagreed that the bank should be looking into a digital Canadian dollar.

The consultations received feedback from 89,423 Canadians.

BoC also held focus groups and consultations with members of the financial sector and with groups representing consumers, lower-income Canadians, and Canadians with disabilities.

The BoC had said it was working on a digital currency so it would be prepared if Canada needed one in future, but the decision to create a digital Canadian dollar would be up to the Government of Canada and Parliament.

A digital dollar would not be a cryptocurrency, the BoC said, but rather another form of the current Canadian dollar. It would be backed by the central bank, similar to cash, it said.

The bank also said it would continue to issue banknotes for those who want them.

Over 100 countries representing over 95 percent of global GDP have been considering some form of digital currency. Thirty-eight countries are developing digital currency, and 11 have already implemented it.

Jennifer Cowan, Noé Chartier, and Matthew Horwood contributed to this report.

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