Bank of Canada DENIES interest in government digital currency
https://www.rebelnews.com/bank_of_canada_denies_interest_in_government_digital_currency
The Bank of Canada applied for a 'digital dollar' trademark in December 2023, having researched digital currencies since 2014. Development is currently on hold.
A new Bank of Canada report says a government-controlled digital currency is technically possible, but denied any intention to pursue it, citing widespread Canadian skepticism from their own research, according to Blacklock’s.
The report, A Retail CBDC Design For Basic Payments Feasibility Study, stated that technology is available for a central bank digital currency (CBDC) designed for basic retail payments and outlined a promising system architecture.
The Bank of Canada (BoC) applied for a "digital dollar" trademark in December 2023, having researched digital currencies since 2014. Development is currently on hold.
"Interest exists in a hypothetical digital Canadian dollar," said a federal study from October 29. "However interest does not necessarily translate to adoption."
The BoC defines a CBDC as a digital form of a physical banknote, distinct from cryptocurrencies and other digital money, holding the same value as the national currency.
“Individuals who support the issuance of a hypothetical digital Canadian dollar did not imagine themselves using it regularly,” reads CBDC Design. Those most enthused were teenagers, students, and young adults entering the workforce, while older Canadians expressed skepticism.
Distrust in digital currency arose from security and privacy concerns, including fears of government intrusion.
A hidden clause in Liberal Bill C-2 regarding border security could criminalize businesses and charities accepting $10,000 or more in cash (even through multiple smaller transactions), prompting concerns among freedom advocates about a potential link to digital ID and currencies.
CBDCs can be programmed to enforce agendas, such as limiting food or gas purchases for environmental goals, or restricting unhealthy food and drinks to promote health.
"It could usher in a cashless economy, thereby removing access to the intangible but important benefits cash provides," according to the Justice Centre for Constitutional Freedoms (JCCF).
In a November 2021 document, the World Economic Forum (WEF) revealed that central bankers were considering adopting CBDCs. Prime Minister Mark Carney, a former BoC governor, has promoted digital currencies for convenience and inclusivity in the past.
Despite global interest, the BoC says only Parliament can decide on a digital dollar, though cash will continue to exist. "Bank notes, cash are not going away," said Governor Tiff Macklem. "Canadians like to use cash, and they will be able to continue to use cash."
An earlier central bank poll of 89,423 Canadians revealed that 85% would not use a digital dollar if available, with only 12% indicating potential usage.
Though Canada's post-pandemic economic recovery brought a "new normal" of increased digital payments, the majority of people have not abandoned cash.
The 2022 Canadian Payment Methods and Trends Report noted that cash transaction volume fell to fourth place in 2020 and remained there in 2021. Despite a slight increase in 2023, cash still ranked fourth in payment transaction volume.