The Bank of Canada, the country’s central bank, has been researching the possible issuance of digital currency, according to an internal presentation obtained by the Financial Post.
The presentation was presented to Stephen Poloz, the governor of the Bank of Canada, as well as the central bank’s board of directors and was presented as a two-year research project as to whether the bank should issue its own digital currency. According to the presentation, a central bank-issued digital currency would offer “all the benefits” of central-banked backed assets and “all the convenience and security of wireless, electronic payments.”
“We need to innovate to stay in the game,” the presentation states, adding that “Cryptocurrencies may become a direct threat to our ability to implement monetary policy and lender of last resort (LOLR) role.”
The proposed digital currency could also help authorities collect more information, according to the presentation. “Personal details not shared with the payee, but could be shared with police or tax authorities,” the presentation reads.