The Bank of Canada is reportedly considering launching its own digital currency. 

According to a report by The Logic this week, the Canadian central bank is looking into the possible opportunities and challenges in relation to a public central bank digital currency (CBDC).

The report entitled “Central Bank Money: The Next Generation” was compiled for Bank of Canada Governor, Stephen Poloz for a board meeting in September last year within a two-year research project on the launch of a CBDC.

Earlier this week, a source at the Canadian central bank told Coin Telegraph that the presentation did go ahead. Stephen Murchison, the document’s author, said at the time: “We need to innovate to stay in the game. [...] the CBDC would have all the benefits [of a central bank-backed asset] and all the convenience and security of wireless, electronic payments.”

The report stated that one of the main benefits to the Bank of Canada launching its own digital currency is the ability to gather more information on citizens than is possible when utilising cash. Although these details wouldn’t be shared with the payee, they may be shared with tax authorities or the police, according to the report.

That said, central bank spokesperson Josianne Ménard said in an email to Coin Telegraph that no decisions have as yet been made in regard to the launch of a digital currency: “Our work on CBDC is exploratory, given technological advancements and the important public service that bank notes provide to Canadians.”

In addition, it was recently reported that analysts at RBC Capital Markets indicated that inhibiting Facebook’s Libra may lead to China’s own yuan-backed CBDC dominating within emerging economies. 

RBC said to clients: "If U.S. regulators ultimately dismiss Libra and decide not to draft regulations to encourage crypto innovation in the US, China's CBDC may be strategically positioned to become the de facto global digital currency in emerging economies.”