Bank of Canada drops plans to introduce a central bank digital currency

A statement on the Bank of Canada’s website announced that it "is scaling down its work on a retail central bank digital currency and shifting its focus to broader payments system research and policy development."

According to an article by CBC, the Bank of Canada confirmed with the broadcaster that "it has shifted its focus away from the idea of introducing a digital Canadian dollar."

The Bank has been researching the potential for a digital Canadian dollar, also known as a central bank digital currency (CBDC), for years.

Research has explored the benefits, challenges, and broader impact of an offline digital dollar, as well as the legal and regulatory framework required to support it. Consultations with stakeholders and the public have also been held to assess market needs and gauge its potential adoption.

In 2020, exploration began into the concept of a digital currency, assessing its potential effects on the economy and financial system, as well as the design and technology required to implement a digital form of public money.

Last year, public consultations revealed that most Canadians were opposed to the introduction of a digital currency, citing privacy and security concerns as key reasons.