Canada’s Central Bank Mulling Over a Native Digital Currency 

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Canada is in the spotlight of the cryptocurrency world once more. However, instead of it being a report of some scam or the other, it would seem that the country is now moving ahead with keeping illegal crypto activity at bay.

On October 16, news medium The Logic reported that the Bank of Canada is exploring the feasibility of launching its own digital currency. According to the report, the country’s highest banking institution is of the conviction that a Central Bank Digital Currency (CBDC) could be the solution it needs to the threats that it has also noticed with the increased popularity of cryptocurrencies. 

Work is being done beneath the surface 

The document, which was titled “Central Bank Money: The Next Generation,” was reportedly compiled by Stephen Poloz, the current Governor of the Bank of Canada. It was presented at a board meeting on September 2018, and was part of a two-year research project that examined whether or not it would be advisable for the financial authority to launch its own currency. 

In addition to that, news medium Cointelegraph confirmed from an unnamed source at the Bank of Canada that the presentation did happen. At the time, the author of the report was said to have written:

“We need to innovate to stay in the game. […] the CBDC would have all the benefits [of a central bank-backed asset] and all the convenience and security of wireless, electronic payments.”

The document adds that one of the most significant benefits that the launch of a digital currency would bring is the ability of the Central Bank to collect more information from its citizens. Personal details could be shared with other financial regulators, police, and tax authorities, thus providing even higher levels of surveillance from the government. 

There would be consequences

It is worth noting that the link between Canada’s government and the launch of a digital currency is still exploratory, as nothing concrete has come from it. However, the prospect definitely does seem to be attractive. Launching a digital currency in a market as strong as Canada will definitely serve to favor the crypto space in general, but doing so could also be to the detriment of other cryptocurrencies. 

When criminal activities are concerned, Canada is becoming more of a hotspot. Just yesterday, a report from local news medium Voice revealed that several people have begun scamming locals in the country by impersonating police officers and officials from the Canada Revenue Agency. Per the report, these people will call their victims, claiming that their social justice numbers have been used to make purchases, and there are outstanding balances. 

As can be expected, most of these criminal activities revolve around the use of Bitcoin as a means of payment or ransom. The government could choose to ban Bitcoin and other altcoins in favor of its own digital asset, thus achieving two objectives; progress with the eradication of cryptocurrency crimes and the continued promotion of cryptocurrency activities in the country.

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About Jimmy Aki

Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system.

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