The Bank of Canada said that it currently does not see an urgent reason for it to issue a central bank digital currency (CBDC). Amid the global CBDC race, the Canadian bank does not see a strong case for issuing a state-owned digital currency.
Bank of Canada’s deputy governor, who is also the head of research at the bank’s fintech and crypto department, Timothy Lane, commented on CBDC issues at a May 26 panel, Reuters reports.
Based on the statement by the official, the central bank of Canada is now focused on CBDC implementations in strong terms, thinking on the ways it can work and appear. Nevertheless, the Bank of Canada has not got any strong case for issuing the CBDC quickly. Lane mentioned:
“In terms of where we are with the project, we don’t currently see a strong case for issuing it, but the world is progressing very rapidly and probably even more so in the wake of the pandemic.”
The Bank of Canada has also outlined several risks related to the issuance of a state digital currency previously. In October 2021, the central bank issued a report on the CBDC-related risks, paying a lot of attention to the threats that come up from CBDC storage issues and the competition between cryptocurrency exchanges and banks in terms of attracting users.
Sometime in December 2021, Lane said that the global COVID-19 pandemic may force Canada to launch a CBDC sooner than it originally planned. The bank official said in late 2021:
“I would say that in the last nine months we’ve seen developments that look like they’re in the direction of some of those things coming to pass sooner than expected.”