Central Bank of Canada now wants to introduce its own digital currency
The Corona crisis could accelerate the creation of a Canadian central bank digital currency.
Timothy Lane, Deputy Governor of the Central Bank of Canada and also the Head of Research in its Crypto and Fintech Division, says that a Canadian Central Bank Digital Currency (CBDC) could come to the market „sooner than expected“.
Lane made the relevant comments in an interview on Tuesday about Bitcoin Evolution the Bank of Canada’s strategy for digital payment systems.
According to Lane, the expected decline in cash payments due to the Corona crisis is progressing faster than expected. This, in turn, could lead the central bank to release its CBDCs earlier than originally planned:
„In February, we identified two possible scenarios for which we wanted to be prepared. On the one hand, a decline in cash use and, on the other, the rise of digital currencies. Over the last nine months, there have been developments that could make these two scenarios a reality much sooner than we had thought.
These statements at least indicate that the Bank of Canada is now positive about the introduction of its own central bank digital currency.
In October, the central bank had initially pointed out the dangers and risks of CBDCs in a report
From this, it concluded that the introduction and use of a CBDC must be carefully considered.
Meanwhile, Lane had said in February that he did not see good reasons for his central bank to introduce its own digital currency, as „the existing payment ecosystem is doing its job.
Although the Corona crisis is increasing the demand for cashless payments and China has already made massive progress towards its own digital currency, many countries still want to wait and see before working on a project of this kind.