**Bank of Canada Shifts Focus Away from Retail CBDC**

The Bank of Canada is scaling back its work on retail central bank digital currency (CBDC), according to a recent update. While the bank has conducted extensive research on CBDCs, it is now prioritizing other pressing payment issues.

- The Bank of Canada emphasized the need for a "contingency plan" for CBDCs but is now focusing on broader payment system research and policy development.

- Payments Canada continues to develop the Real-time Rail instant payment system, with over 100 members, including the Bank of Canada.

- The bank will also enhance supervision of retail payments under the Retail Payment Activities Act of 2021, starting with the registration of 2,500 small payment service providers in November.

Despite the shift, the bank acknowledges that its CBDC research will be valuable if Canadians decide they need a digital dollar in the future.