Covid-19 has pushed Bank of Canada toward ‘digital looney’
The Canadian central bank would be a better steward of financial data than private stablecoin issuers, according to one deputy governor.
The Bank of Canada is pushing ahead with digitizing its currency.
In a speech today, BoC deputy governor Timothy Lane noted that the COVID-19 pandemic had accelerated the need to digitize cash. Lane said: “The pandemic may bring us to a decision point sooner than we had anticipated.”
“A central bank—with no commercial motivation to harvest data—is uniquely positioned to build in safeguards for privacy, while at the same time defending against criminal uses. Privacy is clearly important to Canadians, and it’s also in the public interest to protect some degree of privacy.”
Today’s remarks fall in line with the steady decline of cash usage in Canada over the course of 2020, a trend that Lane noted in December.