Bank of Canada Governor: Issuing Digital Currency Pending, Next Year Will Focus on Emerging Payment Technologies such as Bitcoin and Stablecoin

Bank of Canada Governor Stephen Poloz recently talked about his outlook and issues for 2020. In his year-end speech on December 12, Poloz mentioned economic issues and the structural forces affecting Canada's global economy. His presentation focused on Canadian inflation, population growth, monetary policy and other fiscal issues.


In addition, he talked about the impact of digitization and the future of currency. In this context, Poloz pointed out that emerging payment technologies, including the application of Bitcoin and stablecoins, are an area that requires continuous research.

Near the end of his speech, Poloz stated:

"From all perspectives, it is an open question whether the Bank of Canada will consider it necessary to issue a digital currency in lieu of cash. However, the world of money is rapidly evolving, so we need to plan for any emergencies. We will say more about this in early 2020. Because they (digital currencies) may be global, they are attracting the attention of central banks and other regulators. "

Poloz also mentioned that it is working with payments company Payments Canada to modernize its core payment system. Bank of Canada has been researching related innovations through a technology sandbox. This indicates that Libra and cryptocurrencies will continue to influence policy regulators in 2020.


(Stephen Poloz, Governor of the Bank of Canada)

This is not the first time Poloz has publicly mentioned digital currencies . He has stated that currencies issued by the Central Bank are always important public goods. No matter how widely digital currency is used, private digital currency cannot achieve this goal. Another benefit of cash is that it is still available even during power outages or cyber attacks. So taking all factors into consideration, the Bank of Canada has not yet decided whether to issue digital currency in lieu of cash.

Nevertheless, the Bank of Canada has long experimented with the blockchain project Jasper. In May this year, the network of Jasper and Singapore's digital currency project Ubin was connected (these two projects are based on two different blockchain networks: Corda R3 and Quorum of JP Morgan Chase), and completed a distributed ledger technology Experiments on cross-border and cross-currency payments using central bank digital currencies.