The Bank of Canada Says There is No Pressing Need to Issue Central Bank Digital Currency

Central bank digital currency (CBDC) has become an area that many central banks need to study. Bank of Canada Governor Tiff Macklem said that there is currently no pressing need to issue digital Canadian currency, but if other countries have CBDC, it will definitely be. Canada brings some problems, so you need to make sure that the local area is ready.

In an interview with Reuters recently, McCallum mentioned that the Bank of Canada is working with the Group of Seven (G7) to study the CBDC plan. He said that the relevant plan needs global coordination to prevent accidents and prevent criminals from using it. CBDC commits crimes. He also pointed out that the central bank is moving from the stage of proof-of-concept to the full implementation of the plan.

At present, when dealing with CBDC, many central banks take into account the development of other countries, worrying that once other countries have it, they may impact their own currency sovereignty in the era of digital economy. McCallum also pointed out the situation in this regard, indicating that when currencies cross national borders, he does not want other countries to be surprised. Therefore, for the Bank of Canada, countries share information, such as research and implementation progress, planned development and timetables.

At present, the U.S. Federal Reserve, European Central Bank, Bank of Japan, and the People’s Bank of China are all studying the advantages and disadvantages of using central bank digital currencies. Among them, the People’s Bank of China is the most active. This year, it has started internal testing in four cities in China. Earlier, the test was opened to the public in Shenzhen. Through a lottery, Shenzhen residents who won the prize can go to designated merchants and use digital renminbi to spend.