The Bank of Canada has no plans to launch a digital currency, at least for now
OTTAWA, October 18 (Reuters) – The Bank of Canada reiterated Monday that it does not plan to introduce a digital currency at this time, but said that could change if people start using less physical money .
The Canadian central bank says it is well advanced in the process of developing a digital cash-like currency that it could return to the public when needed. A number of other central banks are doing similar work.
“We have not yet made the decision to issue one because we fundamentally do not see a compelling need under the current circumstances,” Bank of Canada Deputy Governor Timothy Lane said in a statement. virtual panel organized by a Washington think tank.
If people started using paper money and coins less, it could present the bank with a stronger case to introduce its own digital currency, he said, noting that during the COVID-19 pandemic, some companies had stopped accepting cash and coins.
If this persisted, it “could leave some households out in the cold, which could affect their ability to participate fully in the economy,” Lane said. “Serious thought should be given to whether a digital equivalent of cash would play a valuable role in financial inclusion.”
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Reporting by David Ljunggren Editing by Paul Simao
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