It may be that OVID-19 will force the Bank of Canada to launch a CBDC earlier than expected.
Canada may launch the CBDC sooner than expected, says Central Bank ExecutiveNOTÍCIAS
Timothy Lane, deputy governor of the Bank of Canada and head of the bank’s research department for fintech and crypto, said that the central bank of Canada’s digital currency, or CBDC, may see the light of day „sooner than expected. Lane made his Wealth Matrix comments in an interview on December 1 on the Bank of Canada’s approach to digital payment systems.
According to Lane, the predicted decline in cash transactions fed by COVID-19 has been happening faster than the bank expected. This may cause the bank to issue a CBDC earlier than originally planned:
„In February, we identified two scenarios for which we would like to be prepared. One was the disappearance of cash acceptance, and the second was the emergence of digital currencies […] I would say that in the last nine months we have seen developments that seem to be heading in the direction of some of these things happening earlier than expected. ”
The Vice-Governor’s latest observations suggest that the Bank of Canada is changing its position towards a CBDC.
In October 2020, the Bank of Canada published a report describing the main risks associated with the CBDC. The bank said it needs to „carefully consider how the CBDC will be aggregated and used“ to ensure that the CBDC is a safe and efficient method of payment.
In February 2020, Lane said there was no convincing case for the Bank of Canada to launch a digital currency, saying it would continue to be „well served by the existing payment ecosystem.
Despite the increase in digital payments due to the VIDEO-19 pandemic and China’s progress with digital yuan, several countries around the world have taken a ‚wait and see‘ approach to the CBDCs, including the United States, New Zealand and Russia.