Bank of Canada Seeks “Globally Coordinated” Approach On CBDC From Other Central Banks

The governor of the Bank of Canada, Tiff Macklem, has called for a “globally coordinated” effort to create CBDCs. According to the governor, the coordinated effort would prevent criminals from using state-backed digital currencies. 

In a Reuters report, Macklem also confirmed that the Bank of Canada is working with its G7 regarding creating a digital currency. 

While speaking to Reuters, the governor added that the bank was working on advancing from “proof of concepts” to a more feasible plan for a digital loonie. However, Macklem said the central bank does not have a reason to further the process at the moment. 

The governor told Reuters:

“Currencies move across borders, and so we certainly wouldn’t want to be surprised by some other country. It will be important for us to share information on what each of us is doing, is planning on and on the timeline that we might do it on” 

Before now, the Bank of Canada released a staff analytical note that examines the risks associated with digital currencies. In the note, the central bank said risks may arise from the use of CBDCs and how other central banks and crypto exchanges compete to gain customers. 

The note also highlighted the importance of private keys. Bank of Canada noted that crypto exchanges also have a part to play in preventing the security risks.

Image Credits: Pixabay