Cryptocurrency News

Bank of Canada sees no strong case for digital dollar – for now

The Bank of Canada currently sees no concrete reason to issue a central bank digital currency, or CBDC.

Timothy Lane, deputy governor of the Bank of Canada and head of research at the bank’s fintech and crypto department, spoke on CBDC’s issues in Wednesday’s panel, Reuters Reports.

According to the official, the Canadian central bank is now focusing in more concrete terms on the implementation of the CBDC, wondering how it might work and look. However, the Bank of Canada has not found any concrete case to issue CBDC, Lane said:

“In terms of where we are with the project, we do not currently see a strong case for releasing it, but the world is moving very fast and perhaps even in the wake of an epidemic.”

Not only does the Bank of Canada not see a convincing case for issuing CBDCs, but it has also underscored many of the risks related to the state’s digital currency earlier. In October 2020, The bank released a report on the risks associated with CBDCPay special attention to CBDC storage issues and threats arising from competition between crypto exchanges and banks in terms of attracting users.

Last December, Lane said the global coronavirus pandemic May force Canada to launch CBDC soon More than originally expected. He said at the end of 2020, “I would say that in the last nine months we have seen developments that seem to be in the direction of some of those things happening sooner than expected.”