Some technologists are telling the Bank of Canada (BoC) that its wait-and-see approach when it comes to issuing digital currencies runs the risk of leaving it behind in the race to innovate globally. Although its Governor Tiff Macklem said in April that the pandemic has accelerated the digital economy and “the case for a digital currency becomes more compelling,” the central bank says it has no immediate plans to launch a digital loonie. (Global News)
Here is an expert from McGill University that can provide comment on this issue:
Katrin Tinn, Assistant Professor, Desautels Faculty of Management
“With the proliferation of crypto-moneys, central banks may still be best positioned to provide a cash-like digital currency to the public, as an alternative to digital and physical cash. The BoC has taken up the challenge of thinking ahead of how such a Central Bank Digital Currency (CBDC) would look like, should there be a political decision to launch one in the future. It could arguably be more aligned with common social objectives, such as preserving privacy where it matters, avoiding the exclusion of less wealthy individuals, and providing an infrastructure for innovation and more efficient financial contracts.”
Katrin Tinn is an Assistant Professor of Finance at the Desautels Faculty of Management, where she focuses on applied theory in financial economics and information economics. In collaboration with Christophe Dubach, Associate Professor in the Department of Electrical and Computer Engineering, she submitted a proposal to the Model X Challenge, a project seeking new designs and business models from North American institutions for the CBDC, which was selected as part of the three top projects by the BoC.
