Bybit launches BTC Brawl trading competition
·

Central bank of Canada considering launch of its own digital currency to enforce KYC and monetary controls

Central bank of Canada considering launch of its own digital currency to enforce KYC and monetary controls

The central bank of Canada is considering launching a sovereign digital currency that would eventually replace cash and combat the “direct threat” cryptocurrencies pose to monetary controls, The Logic reported.

The plan bears a striking similarity to that of the People’s Bank of China (PBOC), who in August said it was preparing to launch a state-backed digital currency in a bid to better track the transactions of its 1.3+ billion citizens, consolidate its grip on monetary policy, and stave off cryptocurrencies.

In a similar vein to the PBOC, the Bank of Canada said it would ease the digital currency into circulation at first but that ultimately it would replace physical cash—which could become “too costly” to circulate in the coming years, according to an internal presentation made by the bank.

Canada’s central bank claimed the project is still in the research stage, however, and the plan is yet to be given the green light.

Crypto is spreading, and central banks are taking action

Canada joins an ever-growing list of nations that have unveiled premeditated sovereign digital currencies—their hands seemingly forced as cryptocurrency teeters on the brink of global adoption.

The Bank of Canada, which began researching digital currencies in 2013 according to the Financial Post, said in its latest presentation cryptocurrencies could become a “direct threat” to its “ability to implement monetary policy and lender of last resort (LOLR) role.”

Central banks have stressed the importance of maintaining monetary controls in discussing their digital currency plans, while the motivation of tracking citizens’ transactions has, perhaps strategically, remained a quieter narrative. Just weeks ago, the U.K.’s Financial Conduct Authority announced it would be enforcing AML regulations on crypto exchanges, ATMs, and open-source applications like wallets—a dramatic move that would bring banking-style controls to crypto in the nation.

As such, the Bank of Canada noted that its prospective digital currency would be more traceable than cash, allowing police and tax authorities to have access to Canadians’ transaction records.

Posted In: , Adoption

The above advertisement is an affiliate link. CryptoSlate will earn a small commission if you sign up.

Like what you see? Subscribe to CryptoSlate

Get our daily newsletter containing the top blockchain stories and crypto analysis straight to your inbox.

Sign up to stay informed
Jonnie Emsley
Author

Jonnie Emsley

Journalist @ CryptoSlate

Jonnie Emsley is a freelance writer and blockchain enthusiast based in Ho Chi Minh City, Vietnam. Discovering new corners of Southeast Asia and emerging cryptocurrencies give him a buzz like none other.

View author profile

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.