Bank of Canada (BoC) has launched a public consultation initiative, #HaveYourSay, seeking feedback from Canadians on the possibility of a digital Canadian dollar central bank digital currency (CBDC) and its features. The consultation will remain open until June 19, and BoC is encouraging the public to share their opinions through comments.
BoC released a video advertisement urging public participation in CBDC exploration, indicating the need to keep up with the shift in trends from cash to alternative payment methods. BoC Senior Deputy Governor, Carolyn Rogers, emphasized the importance of ensuring everyone can participate in Canada’s economy.
The proposed digital Canadian dollar is expected to complement cash instead of replacing it, as per BoC’s statement. According to the Atlantic Council, over 114 countries are now considering implementing CBDCs, with more nations expected to make substantial progress in piloting a CBDC in 2023.
Juniper Research predicts that CBDCs’ value will soar from the current $100 million to $213 billion by 2030, propelled by governments using them to enhance financial inclusion and increase their authority over digital payments.
The implementation of CBDCs is expected to improve access to digital payments, especially in emerging economies where mobile penetration rates surpass banking penetration rates. By 2030, 92% of the overall value transacted via CBDCs will be for domestic payments.
However, the possibility of introducing digital currency is still a topic of debate. Conservative Leader Pierre Poilievre made a statement last year that he would discontinue any proposals for a digital currency if he were to become the Prime Minister.
The Canadian Securities Administrators recently issued new guidance that clarified which crypto tokens could be securities and which could not. The guidance is intended to assist businesses in navigating their regulatory obligations in the Canadian securities market.
The introduction of a digital Canadian dollar CBDC is a significant step towards modernizing Canada’s financial system and providing secure digital payment options to its citizens. The increased adoption of CBDCs is expected to drive the sector’s growth and improve financial inclusion in emerging economies.