- Shift of Focus
- New Stage of Payment System Regulation
- Research and Public Opinion
The Bank of Canada (BOC) has announced the suspension of the development of a retail central bank digital currency (CBDC). Research will continue only for wholesale digital currency. The decision was made amid shifting priorities of the bank.
Shift of Focus
The Bank of Canada has spent a considerable time studying CBDCs, but now its priorities have shifted towards more urgent matters. A “contingency plan” for CBDCs remains in place.
New Stage of Payment System Regulation
It is worth noting that the Real-time Rail retail payment system is still in the development stage. Payments Canada, which includes over a hundred participants like the Bank of Canada, manages the country's payment clearing and settlement system.
Research and Public Opinion
The bank collaborates with the Bank for International Settlements (BIS) and the Digital Currency Initiative at Massachusetts Institute of Technology, conducting CBDC research. Both high-level and ground-level investigations were conducted, revealing that the general public in Canada is not particularly interested in CBDCs, and the new currency could pose additional issues for the economy and society. Despite shifting priorities, the bank believes the research will be valuable if Canadians, through their elected officials, decide in the future that a digital currency is needed.
While the Bank of Canada has halted work on the retail digital currency, research continues in other areas. The accumulated experience will be beneficial for developing a digital currency if needed in the future.
