32 | winter 2018 cmba-achc.ca CMB MAGAZINE
O
n November 30,
2017, the Bank
of Canada (BoC)
released a staff
white paper
cautiously in
favour of creating
a central bank-issued digital currency (CBDC)
for Canada. Referencing the continuing trend
toward using electronic forms of payment
in lieu of physical currency, the white paper
explores the possible economic benefits of a
CBDC and whether such benefits would justify
the move. Although none of the proposed
benefits are a panacea, the white paper takes
the position that a CBDC would not disrupt
the financial system in a negative way. Rather,
if implemented carefully, it may promote cost
savings, efficiency and greater stability.
By releasing the white paper, the BoC adds
to the conversation taking place among central
banks across the world. e Federal Reserve
Bank of New York recently confirmed that the
U.S. is also paying attention to digital currencies
and are considering issuing their own. e
Central Bank of England has been engaged
in a multi-year research project regarding
the implications of issuing a digital currency
since 2015. Other countries have been more
aggressive, such as Russia promising to issue the
CryptoRuble in the near future as a means of
fighting tax avoidance. Japan is already testing
its J-Coin in hopes of moving the Japanese
economy away from "non-productive" physical
currency by 2020. Should the BoC decide to
issue a CBDC, it will likely be in good company.
By Paul Belanger, Jacqueline Shinfield &
Victoria allSoPP – BlakeS, caSSelS & graydon llP
BofC
gets More Serious
about issuing a
digital currency
