CBDC News

Canada Steps Back from a CBDC

The Governor of the Bank of Canada has said, ‘… there is not currently a compelling case to move forward with a CBDC in Canada, the Bank is scaling down its work on a retail central bank digital currency and shifting its focus to broader payments system research and policy development. The Bank will continue to monitor global retail CBDC developments. And the Bank will be ready to ensure Canadians always have a safe and secure supply of public money.’

Back in 2020 the Bank of Canada saw the maintenance of monetary sovereignty as the prime benefit since Canadian payment needs were already well met.

With the US unlikely to launch a retail CBDC any time soon, a risk that does still exist is a successful US dollar stablecoin. In addition, the risk of fragmentation from private payment systems is also a concern. In late 2023 the Bank of Canada released the results of a public consultation showing Canadian citizens oppose the idea of a retail CBDC.