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The Central Bank of Canada is accelerating the work on its own cryptocurrency

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. Using the existing experience of cryptocurrency circulation, the Bank of Canada is ready to make its CBDC available even for people who do not have a bank account or a mobile phone.

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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. 

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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. 

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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.”

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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.

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Eva Wesley is an experienced journalist, market trader, and financial executive. Driven by excellence and a passion to connect with people, she takes pride in writing think pieces that help people decide what to do with their investments. A blockchain enthusiast, she also engages in cryptocurrency trading. Her latest travels have also opened her eyes to other exciting markets, such as aerospace, cannabis, healthcare, and telcos.