Canadian universities propose designs for a central bank digital currency

The Bank of Canada is researching potential system designs and business models for a digital currency that, like a banknote, would be widely accessible, secure and denominated in Canadian dollars. To solicit additional ideas, the Bank engaged three independent project teams in 2020 to conduct exploratory design work with minimal direction from the Bank. All three design proposals were published today in reports from:

• University of Calgary
• McGill University
• University of Toronto and York University (joint submission)

While the Bank is ramping up contingency planning for a central bank digital currency, it currently has no plans to issue one. The proposed designs are therefore not intended to be adopted by the Bank. Rather, the Bank will use these reports to inform its thinking and advance public conversation on a central bank digital currency design.

To learn more about the Bank’s work on digital currencies, read “Payments innovation beyond the pandemic,” a speech delivered yesterday by Deputy Governor Timothy Lane to the Institute for Data Valorisation.