Public consultation on CBDC launched by Bank of Canada, all you need to know

• The Bank of Canada is inviting public feedback on a potential central bank digital currency (CBDC) issuance.
• The central bank clarified that issuing a CBDC in the future will have no impact on the printing of banknotes.

Banque du Canada, the country’s central banking institution, is inviting public feedback on potential central bank digital currency (CBDC) issuance.

The Canadian central bank recently announced that it was exploring a digital version of the Canadian dollar. This was after the growing adoption of private cryptocurrencies and CBDCs around the world. 

Bank of Canada will print banknotes despite CBDC

According to a 8 May press release from the Bank of Canada, an online public consultation has been launched to encourage citizens to participate in the designing of a digital Canadian dollar. The central bank has invited the public to explore the use cases of a potential CBDC and decide which features should be integrated into a digital Canadian dollar. The consultation opened yesterday and will remain active till 19 June, 2023. 

The Bank of Canada took cognizance of the rapidly evolving digital payments space and acknowledged that there may be a time in the future when cash becomes less popular and the payments industry gets dominated by private cryptocurrencies or CBDCs.

Thus, to avoid the risk of the Canadian dollar losing its status as an official and centrally issued currency in the future, the central bank is considering issuing a CBDC of its own. 

Carolyn Rogers, the Senior Deputy Governor of the Banque du Canada, stated:

“As Canada’s central bank, we want to make sure everyone can always take part in our country’s economy. That means being ready for whatever the future holds. We want to hear from Canadians about what they value most in the design of a digital dollar. This will help us make design choices and ensure that it is secure, reliable and meets the needs of Canadians.”

The Bank of Canada clarified that issuing a CBDC will not affect the printing of banknotes. The central bank stated that it will continue to provide the paper currency option for those who want it. “Cash isn’t going anywhere,” the central bank added.

A comprehensive report summarizing the public consultation will be published later this year.