As cash declines and digital payments rise, a new Bank of Canada report argues a digital currency might be essential for maintaining monetary sovereignty and financial stability. The paper suggests that without cash, banks could hike fees and reduce service quality.
A central bank digital currency (CBDC) could offer competition, ensuring Canadians can withdraw money digitally. Although the Bank of Canada hasn’t officially adopted this stance, the report marks its strongest support yet for a CBDC to safeguard public money.
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