The Bank of Canada refused to launch a state-owned cryptocurrency “unless urgently needed” – Bits Media

Bank of Canada Deputy Governor Timothy Lane said, that the central bank is not going to launch its own digital currency, unless there is a strong need for it in society.

How
reports Reuters, about this Timothy Lane (Timothy Lane) stated at the virtual conferences, organized by a research center from Washington. Lane confirmed, that the Central Bank of Canada does not plan to launch its own stablecoin in the near future. At the same time, the Bank of Canada is exploring the possibilities of a digital Canadian dollar and exploring options for its practical use.

Lane noted, that many central banks are doing similar work, but this does not indicate their willingness to introduce a state-owned stablecoin.

“We have not yet made a decision to launch a central bank digital currency, because today we do not see an urgent need for this", - Lane said.

He specified, that the regulator can change the decision, if people start using cash less. During the COVID-19 pandemic, many businesses have stopped accepting banknotes and coins. If the situation doesn't change, some households will be “immobilized” and will cease to be full participants in the market economy. According to Lane, this can be considered a compelling argument for the introduction of state cryptocurrency. In this case, you will have to think seriously, will it really be able to expand access of individuals and organizations to financial services.

The Bank of Canada has previously been categorically opposed to the launch of a digital Canadian dollar.. The regulator counts, that state-owned cryptocurrencies may pose a threat to user security, as well as increase competition between cryptocurrency exchanges and traditional banks.