The Bank of Canada has reportedly scrapped its plan to develop a digital currency.
CBC News is quoting central bank officials as saying that, after years of studying the idea, they have decided against introducing a digital version of the Canadian dollar.
The Bank of Canada had been exploring the potential of a digital dollar since 2017. In 2022, it held public consultations on the matter.
Some officials at the central bank had argued that a digital currency is needed to ensure Canada maintains its sovereignty and financial stability in an increasingly digital world, and amidst the rise in popularity of cryptocurrencies.
Canada is not alone. More than 100 other countries are also exploring the idea of a central bank digital currency, including the U.S.
However, the Bank of Canada is now moving away from the idea of a digital dollar, deciding instead to focus on conducting more research into the evolution of payment systems.
Analysts and economists are divided on central bank digital currencies. While some say they offer few advantages, others claim they are inevitable and will need to be widely adopted in the future as the world becomes more digitized.
