Bank of Canada accelerates digital currency job in the wake of a pandemic
The COVID-19 pandemic has added urgency to the Bank of Canada’s development of a digital currency and decision could come sooner than previously thought, a senior policymaker said on Wednesday, though he noted that a launch was not a “foregone conclusion.”
According to Tim Lane, deputy governor of Canada’s central bank who spoke during an event on Wednesday: “The pandemic may bring us to a decision point sooner than we had anticipated.”
But while the pandemic had accelerated the central bank’s work to prepare for the day when it might launch a so-called digital loonie, Lane made clear that moment had not yet arrived.
Elsewhere during the event, Lane sharply criticized bitcoin, remarking that “[c]ryptocurrencies such as Bitcoin do not have a plausible claim to become the money of the future.”Likewise, he shared a critical outlook on stablecoins, or crypto commodities that are somehow related to government-issued currencies such as the US dollar.
“In a speech … a year ago, I gave our preliminary view: we did not see a need for a central bank digital currency at that time,” said Lane. “A year later, our view remains unchanged: a digital currency is by no means a foregone conclusion.”