We've been exploring a digital form of the Canadian dollar, also known as a central bank digital currency (CBDC), to be ready in case it is needed in the future. Find out about the research we completed and about what we're focused on as the payments landscape evolves.
Over the past few years, the Bank of Canada has undertaken significant research towards understanding the implications of a retail central bank digital currency, including exploring the implications of a digital dollar on the economy and financial system, and the design features and technological approaches to providing a digital form of public money that is secure and accessible.
A core part of the Bank’s mandate is to provide Canadians with a secure means of payment they can rely on. In an era where commerce becomes ever more digital, the Bank has explored how a digital Canadian dollar could complement bank notes, so Canadians continue to have all the benefits of money issued by the central bank.
Research on digital currencies
The body of knowledge built over recent years will be invaluable if, at some point in the future, Canadians, through their elected representatives, decide they want or need a digital Canadian dollar. This research includes:
- Research into digital currency technology solutions, ecosystem design and distribution models.
- Research on key features of a digital Canadian dollar including the benefits and challenges of an offline digital dollar.
- Analysis of the financial system impacts of introducing a digital Canadian dollar.
- Identification of key market gaps, user needs and preferences, and potential adoption of a digital dollar through research and extensive public and stakeholder consultations.
- Analysis of the regulatory and legal framework requirements, including for privacy and the prevention of financial crime, that would be required should a digital Canadian dollar be needed in the future.
With this work completed, and with other payments issues gaining prominence, the Bank is scaling down its work on a retail central bank digital currency and shifting its focus to broader payments system research and policy development. The Bank will be ready to ensure Canadians always have a safe and secure supply of public money.
Future of payments
Going forward, the Bank will focus on major developments that will impact Canada’s payments landscape. The Bank’s mandate to oversee retail payment service providers is coming into force in 2024, and work by Payments Canada on Real-time Rail continues. The focus of the Bank’s work on payments system issues will include its payments oversight and supervision functions, policy development related to wholesale and retail payments infrastructure, as well as policy work on cross-border payments in collaboration with our central bank partners.
The Bank will continue to monitor global retail CBDC developments and publish some related research, but the focus will be on preparing for the evolution of payments both in Canada and around the world, through policy research and analysis.
For a deep dive into digital currency, have a look at these resources:
- Understanding money in the 21st century—what money does and how we’re handling it in the digital age
- The road to digital money—how you might pay for things in the future