The leading Canadian universities have presented New research at the Bank of Canada has focused on the development of a central bank digital currency (CBDC), whose acronym is in English, underscoring the continued innovation in this area.
The investigation began last year after the BoC involved four institutions in relation to possible drafts for a national cryptocurrency. A total of three proposals were published simultaneously on Thursday. It should be noted that each proposal was based on the application of blockchain technology.
The presentation of The University of Calgary uses “a combination of distributed general ledger (DLT) and electronic cash (” E-Cash “) technologies with advanced cryptographic primitives”. The presentation will largely focus on promoting universal access to CBDC, especially in remote communities, as well as ensuring strong privacy protections that are in line with Canadian civil liberties.
A design of the McGill University in Montreal focuses on “asymmetrical privacy between the recipient and the sender of money”. Researchers show that The protection of privacy is necessary in order to avoid price distortions and to promote the integrity of the classic money demand function.
A joint presentation by The University of Toronto and the University of York are promoting a Know Your Customer-powered approach to increasing financial inclusion and maintaining economic sovereignty amid the rise of disruptive technologies like the Internet of Things and Artificial Intelligence. According to this approach, the introduction of a Canadian dollar takes place in two phases, starting with the establishment of “digital cash with authentication protocol”, followed by programmable electronic money based on “blockchain as a common resource”.
In submitting the reports, the BoC confirmed that it “has stepped up contingency planning for a digital currency issued by the central bank” but “has no plans to issue one at this time.” Nevertheless, some voices within the BoC are convinced that the country needs a supposed “digital loonie” sooner rather than later.
In a speech on Wednesday the lieutenant governor Timothy Lane The COVID-19 pandemic has accelerated the need for a digital currency:
“The pandemic could bring us to a decision point sooner than expected.”
South of the border, US central bankers are expanding their research on CBDCs. Federal Reserve economists have published several research papers examining the drivers of the value of a digital dollar, although no official decision has yet been made to implement them.