‚Central banks must be ready for CBDCs,‘ says Bank of Canada executive

Timothy Lane says the Canadian central bank is developing a CBDC „at a good pace“.

According to a report on October 15 from The Canadian Press, Bank of Canada or BoC, Deputy Governor Timothy Lane said that central banks should have their own digital currency ready if regulators can actually block the Libra token from Facebook. They also noted the potential importance of such an asset as a possible solution to the economic realities of VIDEO-19.

Lane spoke at an online panel discussion sponsored by the Central Bank Payments Conference, saying the Bank of Canada has developed a digital currency for the central bank, or CBDC, at „a good pace.

He said the bank would need to consult on what Canadians expect from a digital currency, but added that Facebook’s efforts to introduce Libra could help improve international payments. He also noted that this could help people with bank accounts and banked money to become part of the global economy.

The vice-governor’s comments are a change from those of February’s pre-pandemic, when he said there was „no convincing case“ for the bank to create a CBDC.

Canada’s central bank recently released a report calling CBDCs „risky,“ given the competition between cryptomime and banks, and how digital money is used for transactions.