The Bank of Canada is considering issuing its own digital currency in competition with bitcoin (BTC), seven years after the bank quietly killed a similar initiative by the Royal Canadian Mint, according to Blacklock’s Reporter.
“A central bank digital currency could be necessary in the future to ensure a competitive digital economy,” researchers wrote in a report, The Positive Case For A CBDC.
The bank called BTC “a novelty for a small number of enthusiasts in Canada” – fewer than 10% of Canadians own it – but warned if widely adopted it would be “out of reach for Canadian regulators.”
“Cash remains widely accepted,” wrote researchers, who added: “The long term, however, is less clear because if the trend towards less acceptance continues the function of cash as a medium of exchange will eventually erode, likely leading consumers to look for more convenient stores of value.”
