The Bank of Canada has revealed a strategic pivot, moving away from the development of a retail Central Bank Digital Currency (CBDC) to concentrate on comprehensive research and policy formulation concerning the payments system. This change comes in the wake of a public consultation held in 2023, which highlighted substantial privacy issues among Canadians. Although the central bank is not ruling out the possibility of a digital Canadian dollar in the future, it will first focus on safeguarding privacy and ensuring accessibility in any prospective digital currency. The Bank of Canada will keep a close eye on international developments and will continue to publish relevant research, underscoring its dedication to improving the nation’s financial framework.
