Canada’s Cautious Stance on CBDCs

Canada is playing it safe in the realm of central bank digital currencies (CBDCs), as noted by Bank of Canada Governor Tiff Macklem. In a recent interview, Macklem made it clear that the country is not in a hurry to jump into the CBDC pool without checking the water temperature first. “We’re not looking for surprises,” he said, emphasizing a measured approach.

Competition, Coordination, and Currency

When it comes to CBDCs, Macklem sees inter-state competition as a crucial factor. He pointed out that if another country launches a CBDC and Canada doesn’t, it could lead to economic complications. To avoid any unexpected currency conflicts, Canada is coordinating with G7 partners, sharing information and timelines to create a unified front.

The Project Jasper Initiative

Canada has been busy since 2017, working on Project Jasper—a collaborative research venture that explores wholesale applications for digital currencies using distributed ledger technology. This initiative brings together various heavyweights such as R3, Accenture, and the Bank of England. Think of it as a high-stakes tech club where everyone is trying to solve the digital currency puzzle together.

Recruiting CBDC Talent

In a bid to bolster its CBDC development, Canada is actively looking for talent with a deep understanding of private cryptocurrencies and their underlying technologies. This recruitment effort hints at an eagerness to stay in the game and not get left behind as private sector stablecoins, like the controversial Libra, loom large on the horizon.

The Global CBDC Race

The CBDC scene has taken a thrilling turn, with China sprinting ahead through the launch of its digital yuan, currently being piloted in key regions. However, not everyone is convinced that being the first to the finish line is the best strategy. Dmitry Peskov from Russia warned about the financial risks and suggested that sometimes, it’s wiser to watch from the sidelines.