The Bank of Canada is seeking feedback from the public on the potential creation of a digital Canadian dollar, as the country increasingly embraces digital financial solutions.
The Bank of Canada has initiated a public consultation that will continue until June 19, to investigate the potential of introducing a digital version of the Canadian currency, also known as a virtual loonie, in response to the growing digitalization of the world.
According to a statement made by Carolyn Rogers, the Bank of Canada’s senior deputy governor, the bank is seeking input from Canadians on the most important aspects to consider when designing a digital dollar, including security, reliability, and meeting the needs of Canadians.
The Bank of Canada was clear in stating that it has no current plans to create a central bank digital currency (CBDC) or to replace cash with it in the future.
According to the Bank of Canada, physical cash will remain in circulation, but there are concerns that as the use of banknotes declines, some Canadians may be left out of the economy. The bank clarified that if a central bank digital currency (CBDC) were to be introduced, physical notes would still be made available for those who prefer them.
The use of cryptocurrencies or foreign CBDCs becoming widespread in Canada could potentially threaten the stability of the country’s financial system, the BoC warned.
Canadians are being asked to provide their input on the potential digital Canadian dollar through a questionnaire. The survey covers a broad range of topics such as the payment methods used in the past month, the possible frequency of using a Canadian CBDC, and desired design features.
In addition, the survey includes queries about whether the participant has engaged in cryptocurrencies and includes various demographic questions related to income, age, gender, and education.
The BoC has announced that it will release a summary report of the public consultation at a later time this year.