Bank of Canada advances on CBDC and urges international cooperation

The Governor of the Bank of Canada says his institution is making progress with a CBDC, although it is not necessary „at this time“.

He also called for greater cooperation on digital currency issues within the G7

Most countries are actively researching or testing Bitcoin Billionaire, but China appears to be the most advanced in terms of progress.

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The Governor of the Bank of Canada (BoC) announced that his country’s Digital Currency Initiative (CBDC) was moving forward.

In an interview with Reuters published on Wednesday, October 28, Canada’s central bank chief Tiff Macklem said the BoC was working with some G7 member states on its national digital currency plans. Macklem also said G7 members should share information on their CBDC plans and schedules.

According to Macklem, „a globally coordinated approach was needed to avoid surprises and prevent the use of these tools by criminals.“

The G7, which includes the world’s largest advanced IMF economies like the United States, Germany, and Japan, typically collaborate on macroeconomic issues.

For its part, the BoC is also already a member of a working group that includes the central banks of England, Sweden, Japan, Switzerland and the Bank for International Settlements (BIS).

Moving Canada forward

Macklem also noted that the Bank of Canada is moving from proof of concept to more fully executable plans, but there is no urgent need for a CBDC „at this time. „.

Despite this stance, Macklem, who has been in power since June, has expressed concerns about being beaten by other countries, adding that his institution wants to make sure it is ready for a CBDC launch. if the need becomes urgent.

“If another country has [a CBDC] and we don’t, it could certainly create problems. We certainly wouldn’t want to be surprised by another country, ”he said.

A trendy subject

Macklem’s comments come at a time when CBDCs are an increasingly hot topic around the world. The China conducted tests for his aggressive CBDC as it seeks to break its dependence on global dollar payment system. He recently performed an actual $ 1.5 million test.

China isn’t the only non-G7 country making progress towards a national digital currency. South Korea plans to test delivery of CBDCs in 2021, and Japan is working on the legislative mandate required to launch its CBDC.

In addition, the Bahamian digital currency went live earlier this week and the Bank of Lithuania unveiled a digital collectible as a CBDC controlled experiment.