Bank Of Canada Considers Launching Its Own Digital Currency

Bank of Canada considers developing a digital currency that will eventually replace fiat money in the country according to the local media platform which we explore more today in the latest news on altcoin.

According to the reports, Bitcoin came out more than ten years ago as a decentralized peer-to-peer currency that enables private transactions and no government control. The governments, however, learned how to deal with this emerging crypto space. The Bank of Canada had a presentation called ‘’Central Bank Money: The Next Generation’’ which claims that a digital currency issued by the central bank will have many benefits and will allow the sharing of personal data without authorities and taxes.

The reports found out that the Bank of Canada considers developing its own digital currency in order to fight direct threats of cryptocurrencies. This new coin will be widely available and initially be used in parallel with fiat money and in the end, the digital currency will remain the only form of money. The BoC presentation was prepared by Stephen Murchison who is an adviser to Governor Stephen Poloz. He has led the central bank’s digital currency research and after two years of in-depth analysis, he concluded that a central bank digital currency has multiple advantages. The document explained further:

‘’We need to innovate to stay in the game. [A CBDC] would provide all the benefits of a central bank-backed asset, as well as all the convenience and security of wireless, electronic payments.’’

Also, the reports noted multiple benefits but only one setback. More specifically, a digital currency ‘’presents a risk to stable, low-cost funding for banks and deposits.’’ However, the central bank officially claims that it hasn’t yet decided whether it would launch a digital currency but they do agree that the banknotes are becoming obsolete. The bank is also under a lot of pressure from the growing crypto space. And according to the presentation, we can read that:

 “Cryptocurrencies may become a direct threat to our ability to implement monetary policy and lender of last resort (LOLR) role.’’

As per the crypto news, if the Bank of Canada succeeds with its plan, Canada will not be the only country that has a national digital currency. The Republic of the Marshall Islands also stepped ahead with its government-backed cryptocurrency.