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Canada Prepares Itself for its Future in the Digital World

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Overview-

  • Canada prepares itself for its future in the digital world and the bank of Canada plans blueprints for the digital currency.
  • Deputy Governor, Tim Lane informed the same on 25th February at a speech in Montreal.

Bank of Canada prepares itself for the future in the digital world. The bank, however, does not have any plans to issue the digital currency anytime soon but it will still develop a blueprint for the future adoption of the digital currencies according to a report published by Bloomberg.

Tim Lane, Deputy Governor of Bank of Canada said, “The Bank of Canada would design it to provide the benefits of cash—safe, easy to access, private and a good store of value—but in a digital version that consumers could use to buy things electronically online or in person at a shop.” Lane believes that the use and adoption of private cryptocurrencies as a threat to the Canadian dollar. He further added, “If one or more alternative digital currencies threatened to become used widely as an alternative to the Canadian dollar, then a central bank-issued digital currency could be used to defend monetary sovereignty.”

The Bank of Canada has planned two scenarios for digital currencies. First, if the cash usage is restricted altogether and second if private cryptocurrencies become popular in the general population. With these scenarios in mind Lane informed that “In both scenarios, there would be an argument for the Bank of Canada to step in,” and further added, “The bank would do this as a trusted public institution, creating an official digital currency that is designed with the interest of the public as its top priority, with no commercial motive.”

Central Banks have developed a great interest in digital currencies. Recently, we have seen many countries trying to launch their own digital currencies in the coming years. China, Sweden have planned the launching of digital currencies. But Lane has assured that the cash will not be getting obsolete anytime soon.

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