Bank of Canada won’t issue CBDC in the nearest future

by in Cryptocurrency News

Bank of Canada

Central Bank of Canada isn't going to generate its digital currency soon, said Timothy Lane, the bank's deputy head.

He remarked that many Canadians are faced with long delays and the high cost of cross-border transfers that digital currencies may solve.

BTC failed to come to be the “cash of the future,” Lane said, but stablecoins could potentially “transform the world of payments.” He highlighted the increasing popularity of private digital coins, mentioning Facebook’s upcoming Libra project.

Nevertheless, the Bank of Canada isn't ready to issue its digital coin yet.

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“We concluded that at the moment there are no strong arguments in favor of the CBDC release. Canadians will use the current payment ecosystem if it's improved, ”said Lane.

However, the regulator does not deny the release of CBDC in the future. According to the representative of the Central Bank, this can happen when you refuse to accept cash or the widespread use of private digital currencies.

“It could be one dominant digital coin created by a large technology company, a monopoly that would undermine opposition and privacy and create a problem for Canada’s monetary independence,” said Lane.

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Canadian bank will proceed to explore the potential of CBDC and citizen demand for such an asset, he concluded.