Whether you call it game theory or a serious case of FOMO, it won’t be long before the whole world moves to digital money. The Central Bank of Canada has just announced a blueprint for a Central Bank Digital Currency (CBDC), should it need to “defend monetary sovereignty.”
Central Bank of Canada Preparing Just in Case
Deputy Governor Tim Lane delivered a speech in Montreal yesterday. He stated that he did not see a compelling case to issue a CBDC right away since Canadians are “well-served” by the present payment system.
However, the bank is actively exploring the potential requirements and features of a digital currency “if the decision were ever taken to issue one.” It also released a paper laying out prototype plans for a Canadian CBDC.
This is not the first time that the Central Bank of Canada bank has expressed an interest in creating its own digital currency. However, as Bloomberg notes, it is the first time that the bank is shifting toward the active development of a prototype rather than just research.
Besides authoring several papers on the effects that a CBDC could have, Canada joined a coalition of six major central banks last month to discuss how to counter the rising threat of corporate coins like Libra. However, unlike the Bahamas, China, and other countries that have thrown their hats into the ring, Canada’s digital dollar could still be some years away.
World Central Banks Terrified by Libra
If this latest news from Canada proves anything it’s that global central banks are terrified of Libra.