Central Bank of Canada, reviewsthe ability to launch the Central Bank's digital currency (CBDC), which will help it deal with the “direct threat” of cryptocurrencies and collect more information about how people spend their money, reports The BlockCrypto.
Bank of Canada internal presentation,prepared for the manager Steven Polos and the board of directors of the bank, it offers a detailed public view of the bank's views on its own digital coin. According to the presentation, the currency will be widely available and coexist with coins and paper money at the first stage, but in the end it will completely replace them.
Presentation entitled “Money CentralBank: A New Generation, ”was prepared by Stephen Murchison, Advisor Strip, who was commissioned in September 2018 to conduct a CBDC study.
“We need to innovate to stay ingame, ”the presentation says. The digital currency will provide “all the benefits” of the assets supported by the central bank, as well as “the convenience and security of wireless electronic payments”. The presentation listed over ten advantages of introducing CBDC, while analysts identified only one drawback.
"An additional payment method can make the payment system more reliable." However, the digital currency "also poses a risk to stable and affordable financing of bank deposits."
The personal data of the payer is not transmitted to the recipient, but can be transferred to the police or tax authorities, stated in the presentation.
Canada is not the only country that studying digital currency. Last week, the central bank of Switzerland, together with the SIX stock exchange, began to study the possibility of using digital currencies. The Central Bank of China has been conducting a CBDC study since 2014 and is ready to launch in the near future. Yesterday, the former head of the US CFTC announced the need to introduce a digital dollar to counter China’s expansion in emerging markets.