Bank of Canada says it has no plans to introduce digital currency

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Bank of Canada says it has no plans to introduce digital currency

OTTAWA, Oct 18 Reuters - The Bank of Canada said on Monday that it has no plans to introduce digital currency for the time being, but said that might change if people started using physical cash less.

The Canadian central bank says that it is well into the development process on a cash-like digital currency that can be released to the public should the need arise. A number of other central banks are doing similar work.

We haven't made a decision to issue one yet because we already don't see a compelling need under current circumstances, Bank of Canada Deputy Governor Timothy Lane told a virtual panel organized by a Washington think-tank.

If people started using paper money and coins less, that could present the bank with a stronger case for introducing its own digital currency, he said, noting that during the COVID-19 pandemic some businesses had stopped accepting cash and coins.

If that persisted, it could leave some households out in the cold and in effect interfere with their ability to participate fully in the economy. One would have to think seriously about whether a digital equivalent to cash would perform a valuable role in financial inclusion.