Bank of Canada considers launching central bank digital currency to deal with cryptocurrency threats

According to local media The Logic, the Bank of Canada is considering developing a digital currency that will eventually completely replace fiat money.

Photo-1530025809667-1f4bcff8e60f

(Source: Unsplash )

Government supports digital currency for more control

More than a decade ago, Bitcoin came out as a decentralized P2P currency system. It protects privacy and gets rid of government control. However, governments have gradually mastered the way to get along with this emerging “currency”. As the saying goes, "If you can't beat it, join it."

An article published by the Central Bank of Canada on the Internet called "Central Bank Money: The Next Generation" said that the central bank's issue of digital currency would have several benefits, such as it would allow sharing with tax authorities or the police. Personal data.

The Logic got the paper by requesting information, and it found that Bank of Canada was very cautious about developing its own digital currency to counter the "direct threat" of cryptocurrency. The article pointed out that the upcoming central bank digital currency will be widely used. Initially, it will be used in parallel with legal tender, but the digital currency will eventually become the only form of currency.

Many benefits of the central bank’s digital currency

The report was written by Stephen Murchison, a digital currency research consultant at the central bank of Canada's current central bank governor Stephen Poloz. After two years of in-depth analysis and research, Murchison concluded that the central bank's digital currency has multiple advantages. The contents of this document are as follows:

We need constant innovation to stay in the game. The central bank's digital currency will have all the benefits of central bank assets and make wireless electronic payments convenient and secure.

The report lists more than a dozen benefits of the central bank's digital currency, but has one drawback: digital currency "causes the risk of stable and low-cost financing of bank deposits."

However, the Bank of Canada official said it has not yet decided whether to introduce digital currency.

The Bank of Canada agrees that banknotes are gradually becoming obsolete. Faced with increasing pressure from cryptocurrencies, the central bank may need to accelerate.

The Bank of Canada stated in its report:

The cryptocurrency may directly threaten our ability to implement monetary policy and the role of the lender.

If the Bank of Canada's plan is successful, Canada is not the only country with a national digital currency. According to reports, the Republic of the Marshall Islands is pushing the national cryptocurrency last month.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

99% of the transaction volume is fraudulent, what is left behind the false prosperity of the currency circle?

The amount of trading fraud has been ridiculous for the people of the coin circle, but all along, there are always bl...

Opinion

OPNX Development History Tokens soar by a hundredfold, becoming a leading bankruptcy concept?

OPNX is the most comprehensive and complete in terms of product conception in the debt trading field, but from the pe...

Bitcoin

Restoring the entire process of asset transfer: $6.02 million stolen from the DragonEX exchange

In the early morning of March 24th, Beijing time, the DragonEX exchange issued a notice stating that its platform dig...

Blockchain

The Bitcoin exchange is very hot, but the soil of the economics is very thin.

According to the coinmarketcap market data, the trading volume of Bitcoin in the past month exceeded the intra-month ...

Blockchain

report! This 14,000-person hacker organization is eyeing the exchange | DVP hackers are coming to an end

According to Baihuhui, in 2018, the economic loss caused by security problems in the digital currency industry was 2....

Blockchain

Has the long-standing resentment towards VC finally erupted? After falling out with LianGuairadigm, Reflexer bought back tokens and put on a mocking face.

This year, you can earn substantial profits from cryptocurrency, all coming from self-reliant projects without ventur...