Achieving consensus with other central banks on deploying CBDCs is not a priority for the Bank of Canada (BOC). This was stated by Dinesh Shah, director of fintech research, in an interview with The Block.
In January 2020, the regulator, together with BIS and five central banks formed a working group to assess scenarios for the use of a national digital currency in their jurisdictions.
In October, BoC Governor Tiff Macklem said that countries should adhere to a coordinated approach in developing CBDCs.
However, Shah argues that the deployment of digital currencies does not require coordination due to differences in payment systems. In his view, the international working group mainly exists to consolidate research.
“Even if there is no consensus, this open exchange of ideas is very valuable,” he noted.
According to Shah, the study of CBDC at the Bank of Canada began around 2010. The central bank’s interest was triggered not by the appearance of cryptocurrencies, but by a trend in demand for cash.
“As in many other countries, there is a steady decline in everyday use of cash, even as the amount of cash in the economy increases,” he explained.
The official stressed that the central bank has not yet made an official decision to launch a CBDC.
Research is at an early stage, so it is not yet known whether blockchain technology, underpinning most crypto assets, will be used for the digital currency.
“But it remains on our list of potential possibilities,” he added.
In March 2021, BIS urged central banks to cooperate in CBDC development. In June, experts from the organization said that national digital currencies are moving from concept to the stage of practical implementation.