Instead of a blanket supervisory approach, the Bank of Canada will impose regulations centered on end-user impacts and providing efficient payment services.
The Bank of Canada argues the need to consider a central bank digital currency design that combines aspects of multiple archetypes to ensure a common framework across different platforms.
Carolyn Rogers said that the digital assets industry is still relatively small, but the central bank will not wait for it to get bigger before implementing regulations.
The BoE joins the U.S. Federal Reserve and the Bank of Canada, which has been working with MIT, but it insists that it’s just research and the two won’t develop a central bank digital currency.
The Bank of Canada said the global health crisis had hastened the urgency of the development of its state-backed digital currency.
Central bank officials have indicated progress has been made on launching a digital currency, citing the pressures of the COVID-19 pandemic as a catalyst.
The project had moved beyond proof-of-concept and was approaching being ready for a wider rollout, according to the central bank head.
The candidate’s duties will include monitoring developments on CBDCs, digital payments and financial technologies around the world, as well as researching the technology.
The Canadian central bank said the “particular” risks of central bank digital currencies pose challenges for issuers planning to launch a CBDC.
The Bank of Canada is aiming to develop a central bank digital currency that could mimic bank notes on the blockchain.
The Bank of Canada has put up a job posting for a project manager for its CBDC project. The posting revealed more details about the regulator’s CBDC plans.