Canada’s central bank has laid out a positive case for the adoption of its own version of the digital currency, according to the release by Bank of Canada.

  • The Canadian central bank has been mixed on the so called central bank digital currency, and recent views pave the way for a potential adoption. 
  • The central bank cites smart contract functionality as a significant boon for CBDC
  • Other benefits such as promotion of competition in the financial sector and giving consumers choice are cited by the central bank officials.
  • The central bank says the addition of “programmable money” reduces or eliminates costly intermediaries and third parties.
  • There is also the potential to enhance welfare, reduce welfare losses, and facilitate digital innovation by the use of CBDC according to the central bank.

The views by the Canadian monetary authority are a shift from its 2020 position when it dismissed the value of digital currencies following Swedish experimentation with e-krona.

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