The Bank of Canada has announced that it is winding down its research into a retail central bank digital currency (CBDC), marking a shift in its priorities toward broader payment system issues.
Years of Research by Bank of Canada
For years, the Bank of Canada explored the concept of a retail CBDC as a “contingency plan” in case it became necessary to introduce a digital version of the Canadian dollar. However, recent developments suggest the central bank has pivoted its focus.
Broader Work on Digital Currencies
While retail CBDC development is slowing, the Bank of Canada’s broader work on digital currencies is not being abandoned entirely. The central bank has previously collaborated with international organizations such as the Bank for International Settlements and MIT’s Digital Currency Initiative.
Future Research and Regulation
Despite the change in focus, the bank noted that its research into CBDC will remain valuable if, at some point in the future, Canadians, through their elected representatives, express a need for a digital Canadian dollar. In the meantime, the bank is turning its attention to more immediate concerns within the country’s payment infrastructure.
The Bank of Canada has reoriented its efforts from retail CBDCs to current issues in the country's payment systems, aiming to ensure the management of the rapidly changing financial landscape.
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