The Bank of Canada is exploring the possibility of issuing its own digital currency, which will help “fight direct threats to cryptocurrencies and collect more data on the spending of money by citizens.”
Bank of Canada employees presented an internal presentation to the Bank’s CEO, Stephen Poloz, and the Board of Directors, offering more complete information about the advantages and disadvantages of digital currencies. The presentation notes that the digital currency should be widely available and will first be used in conjunction with paper money, and then completely replace them.
“A Central Bank-backed asset has all the advantages of conventional money, but also offers secure and convenient electronic payments. We need to introduce innovative technologies in order not to be left out of history. Cryptocurrencies can become a direct threat to our monetary policy and our role as the final lender,” the presentation says.
The Bank’s employees also noted that the digital currency will allow the authorities to collect much more information about the spending of money by citizens. According to the presentation, “all payment details and buyer data will not be available to the store, but can be provided to the police or tax authorities.
Recall that in July of this year, it was reported that canadian regulators will focus on studying and regulating distributed Ledger technology (DLT), including blockchain.