The Financial Post reports in its Thursday, May 27, edition that deputy governor Timothy Lane said on Wednesday that the Bank of Canada is eyeing digital currency and mulling factors that could prompt it to move, such as a sharp drop in cash usage in Canada, or if a large technology company were to launch a crypto-asset that quickly gained traction with consumers. A Reuters dispatch to the Post reports that Mr. Lane said the bank had made various "proof-of-concept" experiments with private-sector partners but would have to do "a whole lot more" before it settles on a model for its planned digital currency.
He said, "We're now at a phase where we're actually thinking in more concrete terms of, well if we were going to launch something, then what would it look like, what attributes would it have, and how would it connect with the rest of the financial system?" Mr. Lane noted that a central bank digital currency would have to be private enough for consumers to use without worrying about their personal data being tracked.
The BOC said last week that crypto-asset markets were an emerging vulnerability for Canada's financial system. Mr. Lane said that Bitcoin is used "largely as a speculative asset currently."
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