Canada prepares to release its own digital currency

The Bank of Canada spokesman, who previously stated that there was no argument in favor of issuing a digital currency, announced a change in plans. The development team is already working on a digital asset.

Timothy Lane, the current deputy governor of the Bank of Canada, said the Bank may need its own digital currency earlier than expected. The main reason is the decline in the popularity of cash, which has been accelerated by the COVID pandemic.

«We’ve seen a shift away from the use of cash transactions much more rapidly than previously we thought was likely. How much of that is temporary, just associated with the pandemic, and how much of it is the start of a new trend, I think, remains to be seen, but certainly that’s something we’re watching very closely», — shared Lane.

The timing of the release of the digital currency was not announced. However, Timothy confirmed that the working group is preparing everything necessary to launch the asset of the country’s Central Bank. The deputy head of a Canadian bank stressed that the project must be thoroughly checked and tested before release.

It is noteworthy that back in February of this year, Timothy Lane said there was no reason to issue a digital asset from the Central Bank. Among the factors that could influence this decision, he named the abandonment of cash and the growing popularity of private digital assets.

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