Bank of Canada recognizes role of CBDC in the digitalization

by in Cryptocurrency News

Canada

Initially, the Central Bank of Canada spoke out strongly against the launch of a national digital currency (CBDC).

However, at the end of last year, the regulator for the first time made a change in its position on this issue. In parallel, the Canadian Central Bank began to look for specialists in the cryptosphere.

This week, the regulator published a report in which it recognized the large role of the token in the digitalization of the Canadian economy. The study says that CBDC will give people the ability to store funds with minimal risk outside the banking system of the state.

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In addition, the emergence of an innovative instrument on the market will create conditions for competition with traditional financial products, such as deposits. Credit institutions will be forced to improve the conditions for deposits to attract people.

The state digital currency will contribute to the destruction of the hegemony of traditional monopolies. The digitalization of the economy will increase the availability of financial services.

Small companies will have opportunities to successfully compete with IT giants that impose their own rules of the game on the market, the authors of the report emphasized.