Bank of Canada Pauses Digital Currency Development Plans

The Bank of Canada has reportedly shifted its focus away from the idea of introducing a digital Canadian dollar.

Bank of Canada Reconsiders Digital Currency

The Bank of Canada seems to be shifting its focus away from developing a government-backed digital currency, seven years after it first began exploring the idea in response to the rapid digitalization of payments. According to recent reports, the Canadian central bank appears less inclined to pursue the so-called digital Loonie.

As of now, the Bank of Canada has not made any public statements regarding whether it has paused its research efforts toward developing the digital currency. In a commentary, a spokesperson for the central bank admitted that the bank has undertaken “significant research on the implications of a retail central bank digital currency.”

Shift in Focus

However, the bank has decided to shift its efforts toward analyzing payment system trends in Canada and globally. This move comes as data reveals that 134 countries, covering 98% of the global economy, are exploring digital currencies, with 44 currently piloting central bank digital currencies (CBDCs).

Global Landscape of CBDCs

The data also indicates that over 65 countries, including India, Australia, and Brazil, are in advanced stages of CBDC exploration, whether in the development, pilot, or launch phases. Every G20 country is now investigating its own CBDC, with 19 in the advanced stages of exploration.

“Significant research on the implications of a retail central bank digital currency.”

Political Opposition

In mid-August, Canadian Conservative Leader Pierre Poilievre voiced strong opposition to the development of a central bank digital currency in Canada. He pledged to protect cash usage and resist the government’s push toward economic digitization. Poilievre also expressed support for a member of the House of Commons of Canada, Ted Falk’s Bill C-400, which seeks to ban the introduction of such a currency.

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