New York, Monday, September 30, 2024 – The Bank of Canada has paused its digital currency project, which began in 2017, according to a CBC report on Sept. 18. The central bank had been researching the potential for a digital version of the Canadian dollar but has decided to step back from the initiative.
The project was initially launched in response to Canada’s evolving payment landscape. Despite public consultations in 2022, a November 2023 report found Canadians were hesitant about adopting a central bank digital currency (CBDC). The report highlighted that 87% of survey respondents would never use a digital Canadian dollar, and 92% said they would not prefer it over current payment methods. Concerns over cybersecurity and privacy were also significant, with 87% doubting the bank’s ability to protect users from cyber threats.
While the Bank of Canada stated that a digital dollar wouldn’t replace paper money, it was intended to simplify online payments and fund transfers. For now, the central bank is shifting focus to policy research to adapt to changing payment systems.
The decision comes as global CBDC momentum grows. Countries like China, Nigeria, and the Bahamas have made significant progress, with China’s digital yuan pilot reaching $986 billion in transactions by June 2024. Despite Canada’s pause, 134 countries, representing 98% of global GDP, continue exploring CBDCs.
