The Bank of Canada is currently considering the possibility of creating a virtual form of the Canadian dollar. Dubbed Central Bank Digital Currency (MNBC), this could be used alongside cash and would be “the digital equivalent of the money you have in your wallet,” according to the Bank of Canada.

The evolution of payment methods in recent years, targeting digital transactions via debit and credit cards in addition to Interac transfers, is one of the main reasons why the Bank of Canada is considering this option. She thinks it is possible that one day cash will no longer be used for everyday transactions.

No cryptocurrency

Because the MNBC would be issued and controlled by the Bank of Canada, its value would be immutable, unlike cryptocurrencies like Bitcoin, which can fluctuate rapidly against other currencies. Thus, $10 in digital Canadian dollars would still have the same value as a $10 bill.

The Bank of Canada also argues that a Canadian virtual currency, in addition to cash, would serve to protect the Canadian economy from the more widespread use of foreign cryptocurrencies, the use of which could have a negative impact on the stability of the country’s financial system.

“If a digital Canadian dollar were issued, it would be a currency that all Canadians could use every day. We work every day to serve Canadians. Understanding their perceptions, aspirations and concerns is vital to preparing us for whatever the future may hold,” commented Tiff Macklem, Governor of the Bank of Canada.

On this topic, the Bank of Canada invites the people of the country to express their views an online survey until June 19th. Responses and feedback are then relayed to researchers, technology specialists and key decision makers to guide MNBC policy and design decisions. A report will also be produced following this public consultation.