“A CBDC can lead to an increase of up to 0.64 percent in consumption for Canada and up to 1.6 percent for the US, compared with their respective economies if only cash is used. Having both cash and CBDC available to agents (consumers) sometimes results in lower welfare than in cases where only cash or only CBDC is available. This fact suggests that removing cash from circulation may be a welfare-enhancing policy if the motivation to introduce CBDC is to improve monetary policy effectiveness."You can see the full article for yourself, here. A CBDC is a currency that would be created, maintained and managed by The Bank of Canada and possibly by the United States too. As a matter of fact, within this it almost sounds as if this CBDC could be unified between the two countries and act as a universal means of exchange. An interesting concept indeed. CBDC’s are often rejected by many within the crypto community as they believe that a digital currency owned by the central bank has no real benefits outside of those that are currently held within paper FIAT currency. Of course, there are some advantages to using a CBDC that might exist on the blockchain but overall, CBDC’s are not traditional cryptocurrencies and aren’t really seen as viable crypto, instead they are just a digitised version of FIAT currency. Though, even with this in mind, if it can benefit both the Canadian and US economies, it seems like a great idea, right? The next step from The Bank of Canada will be the gauge what is happening within the general public in Canada and the United States. A CBDC won’t work if the public reject the idea, so therefore, in order to proceed, the banks need to put maximum effort and funding into doing adequate market research. A CBDC can’t just create itself, with it, comes years of planning and testing. Though this of course is entirely possible.