You’ve read in these pages of the possible Cryptoruble, Russia’s attempt to stave off bitcoin. The European Central Bank and Swift are also trying to speed up legacy payments processing in order to slow the popular digital asset’s ascent. But is the world ready for aBank of Canada, state-backed cryptocurrency? Maple Leaf Coin? Le Coin Poutine? Coin Eh? Hoser Coin? The northern most American government appears headed in that direction.
Canada Central Bank Explores Own Crypto
Central Bank Digital Currency: Motivations and Implications (CBDC), is the title of a thirty page exploration by the Bank of Canada. Authored by Walter Engert and Ben S.C. Fung, the paper begins with the premise bitcoin and its surrounding technology “have raised the possibility of considerable impacts on the financial system and perhaps the wider economy.”
And while Canada is not particularly thought a hotbed of crypto activity, it does boast floppy-haired executive leadership seemingly ready to instruct a college course on quantum computing at a moment’s notice. If that wasn’t enough, the current Prime Minister’s half brother is a well-known bitcoin advocate.
If any country could pull off a state-backed cryptocurrency, it’s probably Canada.
“This paper addresses the question of whether a central bank should issue digital currency that could be used by the general public,” the CBDC paper begins. It’s goal is to arrive at “a benchmark central bank digital currency with features that are similar to cash.” […]