Bank of Canada releases report on prospects for CBDC
Bank of Canada releases report on prospects for CBDC
On August 10, the Bank of Canada issued a report analyzing the implementation of a central bank digital currency (CBDC).
According to the document, the bank's initiative may face difficulties in gaining widespread acceptance among Canadians due to a lack of compelling reasons for its adoption.
This discussion paper assesses the potential role of the CBDC in a situation where the role of physical money is diminishing globally, particularly in helping those who are not sufficiently engaged in traditional banking.
As the Bank of Canada study shows, a large number of users have limited motivation to adopt a bank's digital currency. This is largely due to the fact that most Canadians already have convenient access to basic financial services and credit.
According to statistics, 98% of Canadian adults have a bank account, and 87% of Canadians have a credit card. The bank emphasized that in replacing traditional money with digital counterparts, difficulties will be experienced by those who are less comfortable using the Internet and technology and rely more on cash.
The Bank of Canada has therefore developed alternative solutions for these people, such as increasing Internet access for low-income categories, introducing low-cost bank accounts, and promoting better interaction between sellers and buyers.
The Bank of Canada has previously conducted public consultations on the potential of CBDC, but the final decision on the implementation of the digital currency rests with the national government.
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