News

C.D. Howe Institute says Bank of Canada should issue a digital currency

C.D. Howe Institute says Bank of Canada should issue a digital currency
Business
In a new report, the think tank says Canadian-dollar-linked stablecoins could become attractive if they are convertible into cash issued by the Bank of Canada and are well designed and well regulated.

A stablecoin is a cryptocurrency that is linked to an underlying asset such as a fiat currency.

It believes a Bank of Canada digital currency should be issued in token form, with decentralized technology for settling transactions.

It says bank-issued digital Canadian dollars could also encourage the private sector to introduce Canadian-dollar-linked stablecoins by enabling convertibility to take place digitally without having to rely on physical banknotes.

The report’s authors add that stablecoin platforms could be given access to the Bank of Canada’s liquidity facilities and deposit insurance to mitigate the risk of runs.
Read more on Toronto Star
News Topics :
Similar Articles :
Business
COVID 19 has meant more people are shopping online, and foot traffic for brick and mortar storefronts hasn’t caught up to pre pandemic levels for many small and medium sized businesses. Bank of Canada deputy...
Business
COVID 19 has meant more people are shopping online, and foot traffic for brick and mortar storefronts hasn t caught up to pre pandemic levels for many small and medium sized businesses. Bank of Canada...
Technology
US regulators have rung the alarm bells over the recent rise in stablecoins, cryptocurrency tokens that have a fixed price and are backed by fiat currency reserves, Bloomberg reports ....
Canada
Larger font Increase article font size A+ COVID 19 has meant more people are shopping online, and foot traffic for brick and mortar storefronts hasn’t caught up to pre pandemic levels for many small...
Canada
“It’s been a really good experience in seeing how much a community can come together, and those who have helped us get there should be very proud, ” says Kyle Penner,...