The deputy governor of the Bank of Canada, Tim Lane, recently revealed that the bank has accelerated plans to potentially create a digital currency.
Lane said, “For several years, the Bank of Canada has been analyzing which circumstances might lead Canada to decide to issue a digital currency. The pandemic may bring us to a decision point sooner than we had anticipated.”
However, in a report credit to Fxstreet, the deputy governor believed that there was no need for such digital currency and states that their view has not really changed.
“Only a central bank can guarantee complete safety and universal access, and with public interest — not profits — as the top priority. We will issue such a currency only if and when the time is right,” Lane said.
What you should know: A digital currency is a cash balance recorded electronically on a store value card or other physical devices, which could someday replace the physical notes.
Digital currencies can be decentralized, that is where the control over the cash supply can come from diverse sources. Digital currencies can also be centralized, where there is a midway point of control over cash supply, just like the way central banks work.
Recall some months ago, the International Monetary Fund (IMF) published a video illustrating what cryptocurrency is.
Besides suggesting that cryptocurrency could “completely change the way we sell, buy, save, invest, and pay our bills,” IMF went on by saying that it “could be the next step in the evolution of money.”
The IMF tweeted the video giving vital details on what cryptocurrency is. Referring to cryptocurrency as “a special currency,” the two-minute video attempts to outline its benefits in payments, such as by removing middlemen, lowering costs, and increasing transaction speed.
— IMF (@IMFNews) August 23, 2020