Will Canada be among the first major countries to launch a Central Bank Digital Currency (CBDC)?

According to reports, a recent internal presentation from the Bank of Canada confirmed the organisation is actively considering whether launching a national digital currency would help it address the “direct threat” presented by cryptocurrencies.

It seems the presentation was part of a two-year research project by Stephen Murchison, advisor to the Bank of Canada’s governor, Stephen Poloz. Apparently, Murchison identified more than a dozen benefits of a CBDC, including the ability to track purchases better, and improve the convenience and security of electronic payments.

Though the presentation concluded that a CBDC would make the system stronger in some ways, it noted that virtual digital assets presented a significant risk to stability.

However, the element that is likely to cause most concern among many is the way in which information recorded by a CBDC would be shared with authorities like the police and tax department. While many will argue it will help in the fight against money-laundering and tax avoidance, others will surely say it is a step too far towards a 1984-style surveillance state.

AYO.NEWS says:

Though the Marshall Islands have already launched a national digital currency (more), so far the major nations have held back. It is well-known that China is at an advanced stage with a national digital currency project (more), but there’s still no definite confirmation on when it will go live. Will the ‘threat’ of Libra encourage more countries to press ahead with their own national projects – or will the anti-crypto reactionary political forces block progress?

There are clearly deep splits emerging in the traditional financial and regulatory world regarding digital assets in general. Earlier today we reported that Bank of England governor Mark Carney has struck a decidedly different tone to most authorities, broadly defending cryptocurrencies (more), while President Trump and the US Internal Revenue Service still evidently don’t believe cryptos can even be classed as currencies in the first place (more).   

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.