Canada has no plans to introduce cash-like digital currency

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Canada has no plans to introduce cash-like digital currency

OTTAWA Reuters - The Bank of Canada said Monday that it has no plans to introduce a physical currency for the moment, but reiterated that that might change if people began using digital cash less.

The Canadian Central Bank says it is well into the development process for a cash-like digital currency that it can offer 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 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 working with less paper money and coins, that would 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, which could affect their ability to participate fully in the economy, Lane said. One would have to think seriously about whether a digital equivalent to cash would perform a valuable role in financial inclusion.