Canada may need a digital form of cash
The pandemic has made digital services more important than ever, including ways to pay other than cash. The Bank has accelerated its work to prepare for the day when Canada might want to launch a “digital loonie.” Such a currency would be issued only if and when the time is right, keeping the following things in mind:
- A tipping point may be reached where the acceptance of cash sharply declines.
- The use of cryptocurrencies created by the private sector is rising, but they are deeply flawed as methods of payment.
- Only a central bank can guarantee universal access, privacy and complete safety of a digital currency, with public interest as the top priority.