Bank of Canada says global approach needed on digital currencies, working with G-7
[OTTAWA] The Bank of Canada is working with its G-7 partners on its plans for a digital currency, Governor Tiff Macklem said in an interview, adding a "globally coordinated" approach was needed to prevent suprises and to keep such tools from being used by criminals.
Mr Macklem told Reuters that the central bank was working on moving from proof of concepts to more fully executable plans for a digital loonie but saw no compelling need for one "right now".
"If another country has one and we don't, that could certainly create some problems," said Mr Macklem. "So we want to make sure we're ready."
"Currencies move across borders, and so we certainly wouldn't want to be surprised by some other country. It will be important for us to share information on what each of us is doing, is planning on and on the timeline that we might do it on."
China has been aggressively experimenting with a digital renmimbi as it looks to reduce its dependence on the global dollar payment system. It ran a US$1.5 million real-world trial earlier this month.
This, along with efforts by Facebook to ready its Libra stablecoin offering, prompted seven major central banks to lay out key principles for issuing CBDCs earlier this month.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Indian banks to step up IT spends as regulatory scrutiny rises
Swedish central bank lowers key rate, sees two more cuts this year
UOB CEO ‘cautiously optimistic’ on 2024; Q1 profit down 1.6% to S$1.49 billion
Australia lending rules make banks go ‘too hard’ on due diligence: Westpac
Australia banks shower investors with A$5 billion in buybacks
Bank of Japan’s Ueda signals chance of policy action if yen moves affect inflation