After years of research, the Bank of Canada says it is “scaling down” its work on a retail central bank digital currency.
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The Bank of Canada has spent several years working with the country’s commercial lenders to explore the creation of a DLT-based CBDC and the implications on the economy and financial system.
During the pandemic, the Bank accelerated work in response to Covid-19 and its impact on cash usage, while still cautioning that a digital loonie was not a “forgone conclusion”. More recently, the usefulness of a CBDC in addressing unmet payment needs in a cashless environment was called into question by a Bank discussion paper.
Now, it says it is scaling down the work and “shifting its focus to broader payments system research and policy development”.
Adds the central bank: “The body of knowledge built over recent years will be invaluable if, at some point in the future, Canadians, through their elected representatives, decide they want or need a digital Canadian dollar.”
