Canada wants no “surprises” for the central bank’s digital currencies. In a recent interview with Reuters, Bank of Canada Governor Tev McCullum doubled down on the central bank’s digital currency contingency plan, stressing that he does not currently see an urgent need for them.
For Macklem, cross-border competition and coordination is still a major issue when it comes to issuing CBDCs. He told reporters:
“If another country has a country and we do not have one, this can definitely lead to some problems. Therefore, we want to make sure we are ready. Currencies move across national borders, so we will definitely not be surprised by another country. ”
To that end, McClim said, Canada is working with its G7 partners to ensure information sharing, planning and a potential timeline for the Convention on Biological Diversity.
A joint CBDC research project, Project Jasper, has been underway in the country since 2017, focusing on wholesale central bank applications for digital money. Jasper has been active in experimenting with general ledger technology in a public-private partnership with R3, Accenture, JP Morgan Chase, the Monetary Authority of Singapore and the Bank of England.
Canada is recently trying to attract skilled professionals for the potential development of CBD, indicating its interest in working with candidates with in-depth knowledge of current private cryptocurrencies and their underlying technologies. In addition to other central banks hijacking the initiative, the Bank of Canada also views stable currencies in the private sector such as Libra as a potential catalyst that will justify pressure on the ball with the CBDC.
From this perspective, Canada is cooperating with the eurozone and the United States in their aggressive stance on Facebook’s digital currency ambitions.
The Chinese digital yuan is without a doubt the most ambitious and significant feature of the central bank’s digital currency market, which has already been tested in major cities and major economic regions. Although this has certainly triggered talk of a geographically charged CBDC race, there are still some countries that are skeptical that a pioneer will surely have the edge.
Dmitry Peskov, Special Representative of the President of the Russian Federation for Digital and Technological Development, recently stated that the financial risk of issuing digital currencies from central banks is so great that it may be better to wait on the sidelines and learn from the experiences of others. with implementation.
US Federal Reserve Chairman Jerome Powell agrees, emphasizing that “it is more important for the United States to rectify the situation than to be the first” and to accelerate the release of the digital dollar.
In fact, after making great strides in cryptocurrency development and innovation, it now appears that China is catching up with the legislative and regulatory front. The People’s Bank of China adopted a consultation bill last week which, among other things, guarantees to put the digital yuan over potential third-party competitors.
At the supranational level, the Bank for International Settlements coordinates with the Central Bank of Canada, as well as with banks in the United Kingdom, Japan, the EU, Sweden and Switzerland, to conduct a comprehensive assessment of the central bank’s digital currencies from a technical, regulatory and institutional perspective.