Digital Assets: Bank of Canada Making Contingency Plans For its Own Central Bank Digital Currency (CBDC)

June 17, 2020 | Digital Assets, News
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A job posting titled “Project Manager, CBDC,” reveals the Canadian central bank’s thinking.

The Bank of Canada is putting in motion plans for a “contingent system for a central bank digital currency (CBDC).” This proposal came to the fore when the bank posted an opening for “Project Manager, CBDC,” on its website. (Coindesk)

The contours of the Canadian CBDC

The Canadian CB DC will be a banknote but in digital form, says the description of the project in the employment posting.

The CBDC with cash-like properties in digital form would be private but amenable to AML and other regulations. In addition, it would be secure, transactable even during power and internet outages, and accessible to all Canadians irrespective of whether or not they possess a mobile phone or bank account, are disabled in any way or live in remote areas with poor cellular connectivity.

The listing includes a digital currency pilot in the broad outline of the project.

Not many other details of the project were disclosed though the listing mentioned a three-year tenure for the appointee.

COVID-19

A spokesperson clarified to Coindesk that “while the use of cash at points of sale may have decreased during the pandemic, we have not seen a material change in demand for banknotes.”

The person also clarified that the Bank of Canada was, as of now, only making contingency plans for a CBDC. “There is not a compelling case at this time to issue a CBDC.”

Moves are afoot by many nations to assess the possibility of issuing CBDCs, notably the EU, South Korea, the U.S. and China.

However, on current reckoning, China appears to be in pole position to come out first with a digital yuan.

Related Story: Bank of Korea Sets Up Legal Think Tank To Review CBDC

Image credit of Bank of Canada: Flickr                                                  

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