Canada Moves Away From Retail CBDC, Shifts Focus to Broader Payments
Summary
Canada's central bank is shifting its focus away from developing a retail central bank digital currency (CBDC) after extensive research. The Bank of Canada announced it will scale down work on a digital Canadian dollar and concentrate on broader payments system research and policy development. While the idea of a retail CBDC is not completely shelved, the bank will continue to monitor global developments and allow for public input on the potential digital dollar. A recent staff discussion paper indicated that cash's relevance may decline, suggesting a well-designed CBDC could address this gap. The Bank received nearly 90,000 responses to a public consultation, with many expressing privacy concerns.
