Canada’s central bank suggests push to digital currency
Digital currency could be coming whether consumers want it or not
The idea of cryptocurrency isn’t exactly new – variations have been in the works for decades. Bitcoin (BTC) raised the bar, however, ten years ago and started to renew a push for digital currency. When the BTC explosion happened in 2017, awareness increased exponentially, but Facebook’s Libra stablecoin has really driven the idea home, even if the Libra isn’t considered a viable alternative. Countries around the world are considering launching their own stablecoin, or some variation, in response to the growing adoption of crypto and Canada is now getting into the excitement, as well.
Canada’s central bank is reportedly taking a serious look at digital currency and what it means for the future, going so far as to suggest that the country should consider adopting the fiat alternative. A report on the subject explains, “We need to innovate to stay in the game,” the presentation reads. A digital currency would provide “all the benefits” of a central bank-backed asset, it says, as well as “all the convenience and security of wireless, electronic payments. An additional payment method could make the payment system more robust and adds that digital currency “also presents a risk to stable, low-cost funding for [bank deposits].”
The central bank is reportedly conducting research into the feasibility of a digital currency and will continue to explore its options. There are a couple of reasons a digital currency makes sense. Besides the fact that the world is moving into a digital era, digital currency is cheaper than printing money. Fiat is also losing ground against crypto, which means that, one way or another, governments are going to have to embrace the fiat replacement.