Canadians have ‘weak incentives’ to use a CBDC: Bank of Canada

The typical Canadian has little reason to adopt a central bank-issued digital currency, which could cause problems with its broad acceptance, according to a new paper from the Bank of Canada.

In the staff discussion

“This suggests the potential system-wide benefits of encouraging digital payment innovations that can function offline as well as the importance of sustaining cash,” it explained.

The paper claimed such a scenario highlighted the importance of the Bank of Canada continuing to issue cash and providing cash accessibility.

The paper noted the central bank previously stated it was committed to supplying cash as long as it was in demand and a CBDC would only be issued with the advent of a cashless society or the widespread use of foreign CBDCs or cryptocurrencies such as Bitcoin (BTC).

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