Bank of Canada takes further steps towards CBDC

19 Oct 2020

Canada’s central bank is seeking to hire an economist with extensive knowledge of fintech and cryptocurrencies, indicating the latest steps towards a Canadian Central Bank Digital Currency (CBDC). 

According to the Bank of Canada’s official website, the role will include monitoring and analysing the latest developments in relation to electronic funds and payments, implementing research projects, preparing analytical notes, and working on the “potential development of a CBDC.”

The Canadian central bank has set out certain requirements that the successful applicant must meet. These include far-reaching knowledge of Bitcoin, Ethereum and other major cryptocurrency platforms, along with familiarity with traditional payments systems such as card networks, merchant acquirers, and point of sale technologies, reports Cointelegraph.

In addition, the applicant is required to have experience in handling and analysing public blockchain data as well as reviewing consumer survey data.
Deputy Governor of the Central Bank of Canada, Timothy Lane recently urged central banks across the globe to launch their own digital currencies, indicating their importance to the economy following the coronavirus pandemic.

Whilst at the Central Bank Payments Conference, Lane said that the development of Canada’s CBDC was advancing at "a good pace”.

The Bank of Canada joins the U.S. Federal Reserve, the Bank of England and the Bank of Japan, amongst others, who have started to undertake research into the feasibility of central bank digital currencies.

Indeed, it was revealed earlier this month that a group of seven central banks and the Bank for International Settlements have jointly produced a report "identifying the foundational principles necessary for any publicly available CBDCs to help central banks meet their public policy objectives." 

The report is entitled: ‘Central bank digital currencies: foundational principles and core features’.

However, the report clarified: "This report is not about if or when to issue a CBDC. Central banks will make that decision for their jurisdictions (in consultation with governments and stakeholders). None of the central banks contributing to this report have reached a decision on whether or not to issue a CBDC."