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By Ismail Shakil
OTTAWA, May 8 (Reuters) - The Bank of Canada (BoC) on
Monday launched public consultations on the features that could
be included in a digital Canadian dollar, in an exploratory move
to gauge the viability of a digital version of the currency.
"As the world becomes increasingly digital, the Bank - like
many other central banks - is exploring a digital version of
Canada's national currency," the central bank said in a
statement. The consultation runs until June 19.
Central banks across the world are studying digital versions
of their currencies to avoid leaving digital payments to the
private sector as the decline of cash has accelerated in some
cases due to the COVID-19 pandemic.
China has been a leader among countries that are developing
central bank digital currencies (CBDC), although adoption is
still in the early stages. The central banks of Japan, Brazil
and Australia have also taken steps toward launching a digital
token.
Policymakers in the United States have been divided, with
Federal Reserve Governor Christopher Waller among skeptics.
"A digital Canadian dollar would ensure Canadians always
have an official, safe, and stable digital payment option issued
by Canada’s central bank," the BoC said.
The bank, however, said that a digital Canadian dollar was
not currently needed, and any decision to issue one would have
to be taken by Canada's parliament and government.
"If a digital Canadian dollar is issued in the future, the
Bank will continue to provide bank notes for those who want
them," it said. "Cash isn't going anywhere."
Pierre Poilievre, the leader of Canada's opposition
Conservatives, has said he would ban the BoC from issuing a CBDC
if he became prime minister.
The ruling Liberals have the support of the left-leaning New
Democrats to keep Prime Minister Justin Trudeau's minority
government in power until the fall of 2025, unless an election
is called earlier.
(Reporting by Ismail Shakil in Ottawa
Editing by Steve Scherer and Mark Potter)
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