Canada has unveiled its plans to design a central bank’s digital currency (CBDC) after years of research.
According to the June 11 job announcement, the Bank of Canada said it was “resuming central banking” and undertaking a program of “great social significance” to create a conditional system for the CBDC. The publication, which is intended for the CBDC project manager, describes the new currency as a “banknote, but in digital form”.
“This project will require us to [be innovative]. It will take into account a wide variety of factors, including policy considerations, diverse stakeholder needs, difficult technical challenges and the development of a technical architecture to implement a CBDC pilot system.”
The central bank outlined the potential challenges to the project’s development, stressing the importance of privacy and accessibility.
The publication argues that the new digital currency will not be ” entirely monetary anonymous” but must be “highly private” while remaining in line with anti-money laundering regulations.
The Bank of Canada also wants CBDC to be used by all Canadians, even those without access to a bank account or cell phone. The publication points to remote communities without access to cellular networks as a potential barrier to accessing digital currency.
In addition to privacy and usability, the news notes the need for CBDC to be resilient in the event of a power outage or network failure, while providing the “highest level” of security.