- The deputy governor of the Bank of Canada has said that the bank doesn’t see a need to issue its own cryptocurrency.
- “We have concluded that there is not a compelling case to issue a CBDC at this time.”
In a recent speech titled "Money and Payments in the Digital Age,", the deputy governor of the Bank of Canada, Timothy Lane said that the central bank doesn’t see a real need to issue its own cryptocurrency unless a competitor to cash eventually takes off.
When it came to the central bank digital currency vision, Canada was one of the banks that was very much in favour and even ran a pilot project on R3's distributed ledger technology solution called Corda. Back in May last year, the project was tested in a cross-border trial with the Monetary Authority of Singapore. Despite the rigorous testing and research, the lawmaker wasn’t impressed by the end result.
“We have concluded that there is not a compelling case to issue a CBDC at this time. Canadians will continue to be well-served by the existing payment ecosystem, provided it is modernized and remains fit for purpose.”
Lane said the following on cryptocurrency is in that they are, “a monopoly that would erode competition and privacy and pose an unacceptable challenge to Canadian monetary sovereignty."
One of the biggest threats to the traditional banking world is the upcoming cryptocurrency from Facebook called Libra. Many companies got on board with the new stable coin when it was initially announced however, over the past year we’ve seen many companies dropout such as Mastercard. The launch of the cryptocurrency is up in the air too, with many wondering if it is necessary for such an asset to see the light of day.
“It’s tough to predict if Libra will ever live up to its promises or even come into existence. But it is a good example of a transformative technology that affects how the bank needs to respond to the future of money.”
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!