Analysts pay attention to the fact that there are signs of accelerating the work of the Bank of Canada to create its own cryptocurrency (CBDC). That is evidenced by the emergence of a vacancy from the regulator, which reported on the search for a specialist who should work on the project “Modernization of the system of the central bank and a fundamental review of the nature of cash in Canada.
Be the first to find out the most important news in the crypto sector with our companion app, Born2Invest. Download our app for free and read more about the Bank of Canada’s plans to develop its own cryptocurrency. Read the latest finance news in the world, with no limit on how many articles you can see, with the best online aggregator.
The Bank of Canada is looking for a CBDC project manager
The text of the announcement also said: “The Bank of Canada is now fully working on a program that has serious social implications. It’s about creating a comprehensive system for the CBDC that will be conceived as a banknote, but in digital form.” The position of the sought specialist sounds like a ‘CBDC project manager’.
It is also clear from the description that the Bank of Canada, in the course of studying the CBDC, came to the conclusion that at least such a tool will provide some confidentiality of spending, but it will be less than cash. However, this nuance in the regulator is considered acceptable and seen as positive, as the launch of digital currency will significantly reduce the volume of financial delinquency.
The cryptocurrency will be also available to people without a bank account
Using the existing experience of cryptocurrency circulation, the Bank of Canada is ready to make its CBDC available even for those who do not have a bank account or a mobile phone. The regulator, thus, considers the use of all possible channels of financial communication and is ready to provide options for the use of the CBDC, which will make this digital currency even more popular than cash Canadian dollars, as noted by the Bank of Canada.
According to the authors of the announcement, this is not a temporary initiative, as the Bank of Canada intends to make the digital Canadian dollar to become the basis of the monetary system of this country “for many decades to come.” Over the next three years, the regulator intends to have a pilot scheme of how its CBDC will function.
The Bank of Canada had confirmed that it had indeed posted the vacancy but noted that it intended to follow clearly the trends in the use of cash in Canadian society. As the regulator admitted, the bank is not sure that the surge in interest in non-cash payments due to the Coronavirus pandemic will result in a significant market abandonment of the Canadian dollar cash in the next year or two, but with a longer planning horizon, much remains unknown.
Back in 2018, Bank of Canada’s analyst Mohammed Davudalhusseini published a study on the regulator’s website entitled “Central Bank Digital Money and Monetary Policy.” A specialist at the Asset Management Policy Development Department concluded that cryptocurrencies issued by the central bank (CBDC) “could lead to a 0.64% increase in consumer demand in Canada.”
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CLICK CHAIN, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Why Morocco Should Go Further with Cannabis Decriminalization
In a long-term vision, the CSMD also recommends a form of decriminalization the recreational use of cannabis, moving from prison...
10 Important Reasons to Update Your Business Website
Many business owners don’t realize the importance of updating their websites. Take your stale, tired, and clunky website to an...
Three Applications Putting Augmented Reality in the Hands of Real Users
Augmented Reality (AR) is an exciting technology, especially now that we’re reaching an age where viable smartglasses are finally coming...
The State of Social Security: A Breakdown of the 2021 OASDI Trustees Report
The difficulties surrounding Social Security have not changed. It’s simply an equation of inflows and outflows. The glaring reality is that in...
Why the Number of Hedge Funds Active on the Crypto Market is Increasing
According to Francesco Filia, CEO of Fasanara Capital, cryptocurrencies often boost the performance potential of traditional hedge funds due to...
Business2 weeks ago
Five Things Small Entrepreneurs Need to Know to Develop a Great Shopping App
Cannabis2 weeks ago
Clever Leaves Exports Cannabis from Colombia
Featured2 weeks ago
How Climate Change is Affecting Stock Markets and the Global Economy
Featured2 weeks ago
Is it Profitable to Bet on Sustainable Investments?