The governor of the Bank of Canada Tiff Macklem (Tiff Macklem) said that the regulator is working with the central banks of the G7 countries in the development of the state digital currency.
Macklem stressed that the creation of state-owned cryptocurrencies requires a “global and coordinated approach” to prevent the use of such financial instruments for criminal purposes. At the moment, the Bank of Canada has already worked out a proof of concept (PoC) and is ready to fully develop a digital currency, although, according to Macklem, there is no need for this asset right now.
“If another state has such an asset, and we do not, it can really bring problems. Therefore, we want to make sure that we are ready to launch a digital currency. Currencies move between borders and we definitely don’t want to get an unpleasant surprise from another country. And it is very important to share information about what each of us is doing, what we are planning. We need to coordinate actions, ” the governor of the Central Bank of Canada stressed.
Interestingly, a Bank of Canada report released in early October suggests that government-backed cryptocurrencies carry more risks than benefits.