Canada• Канада Central Bank Shelves
Its Digital Loonie CBDC Plans
Canada• Канада Central Bank Shelves Its Digital Loonie CBDC Plans
The Bank of Canada• Канада has been openly researching the implications of a central
bank digital currency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта (CBDC) since 2019.
By Will McCurdy
Sep 19, 2024 Sep 19, 2024
2 min read
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Canada• Канада’s central bank has shelved plans for a central bank digital currency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта
(CBDC) , which has been dubbed a “digital loonie,” after almost five years of
research.
A “loonie” is a common nickname for the Canadian dollar.
The Bank of Canada• Канада first launched a research project to look into the creation
of a digital Canadian dollar in 2019, which was then followed by a public
consultation in 2022.
In a research paper from early 2024, the central bank argued that the
introduction of a CBDC could help Canadians maintain monetary sovereignty and
financial stability, as cash use continues to decline across the country.
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Another paper also found that if implemented, the new CBDC could slice bank
deposits in the country by up to 12%.
The proposed digital loonie would have been an example of a “retail CBDC,”
which could have been used by normal Canadians for everyday use cases like
buying groceries or transferring money.
After confirming the decision in an official statement to CBC , the central
bank did not provide a reason for the change of mind.
However, the central bank told CBC it will continue to conduct policy research
and analysis on the evolution of payments, both in Canada• Канада and abroad.
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Despite the potential benefits outlined by economists, the idea of a digital
loonie remained relatively unpopular with many Canadians, if polling is
correct. The central bank released data which found that 80% of respondents
strongly opposed the Bank of Canada• Канада research and building a digital dollar in
November 2023.
Many prominent figures in the Canadian government, such as Pierre Poilievre,
leader of the country's primary opposition The Conservative Party, have
vehemently opposed the idea of CBDC .
Poilivere suggests that the introduction could lead to "politicized banking”
and introduce threats to privacy.
The Opposition Leader instead suggested that Canadians invest in
cryptocurrencies• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта like Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin as a way to preserve their wealth in the face of
high inflation in Canada• Канада over the past few years.
Some other major G7• Объект организация » Организации по алфавиту » Организации на Со » Большая семерка (G7) economies poured water on plans for a retail CBDC in the
first part of 2024.
In January 2024, the United Kingdom• Великобритания said that another study would be necessary
before a CBDC could be implemented in the UK• Великобритания . Meanwhile, Australia made a
similar announcement earlier this week, pivoting away from plans for a retail
CBDC to a wholesale CBDC.
Edited by Stacy Elliott .
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