Soon a new Canadian virtual currency?
The Bank of Canada is currently considering the possibility of creating a virtual form of the Canadian dollar. Known as Central Bank Digital Currency (MNBC), it could be used alongside cash and is, according to the Bank of Canada, “the digital equivalent of the money you have in your wallet.” .
The evolution of payment methods in recent years, largely moving towards digital transactions via debit and credit cards in addition to Interac transfers, is one of the main reasons for the Bank of Canada to consider this option. She believes that it is possible that cash will one day no longer be used in everyday transactions.
Not a cryptocurrency
Since MNBC would be issued and controlled by the Bank of Canada, its value would be invariable, unlike cryptocurrencies like Bitcoin which can fluctuate rapidly against other currencies. Thus, $10 in digital Canadian dollars would still have the same value as a $10 bill.
The Bank of Canada also maintains that a Canadian virtual currency, in addition to cash, would serve to protect the Canadian economy against the more frequent use of foreign cryptocurrencies, use which could have negative effects on the stability of the system. financial institution of the country.
“If a digital Canadian dollar were issued, it would be a currency that all Canadians could use on a daily basis. We work every day to serve Canadians. Understanding their perceptions, aspirations and concerns is key to preparing us for whatever the future may hold,” comments Bank of Canada Governor Tiff Macklem.
In this regard, the Bank of Canada invites the country's population to express themselves in a survey available online until June 19. Responses and feedback will then be channeled to researchers, technology specialists and key decision makers to guide MNBC policy and design decisions. A report will also be produced after this public consultation.