According to TechFlow, on September 19, the Bank of Canada officially shelved its central bank digital currency (CBDC) plan known as the "digital Canadian dollar," ending nearly five years of research.
The Bank of Canada has been publicly researching the impact of CBDC since 2019 and conducted a public consultation in 2022.
A research report in early 2024 noted that launching a CBDC could help Canadians maintain monetary sovereignty and financial stability as cash use continues to decline.
Another report predicted that if implemented, the new CBDC could reduce bank deposits in the country by up to 12%.
