Multiple job postings indicate that the Bank of Canada is finally on the road to designing its own CBDC after years of research into them.
Bank of Canada Could Be Set to Design Its CBDC
Following years of research, the Bank of Canada could be set to start designing its own central bank digital currency (CBDC). The apex bank revealed its plans via the 11 job postings on its official website. According to the Bank of Canada, it is looking to reinvent central banking and is working towards rethinking the nature of the Canadian dollar (CAD).
The Bank of Canada noted that it is starting a program of crucial social significance to design a contingent system for its CBDC, which will be regarded as a banknote, yet it would also be digital money.
The job posting on their official website said a lot about the new role the bank is looking to fill. The CBDC Project Manager is the role the Bank of Canada is looking to fill first, with the job posting revealing the nature of the project without divulging some of the features of the central bank digital currency.
Details of the Potential CBDC
In their job posting, the Bank of Canada revealed that the CBDC needs to protect user privacy, it should remain accessible to people with no bank accounts or access to mobile devices, it should work when power is unavailable, and it should also rival banknotes in terms of security. These features would help the Canadian CBDC to gain confidence amongst a population that is confident of using cash.
In addition to these features, the Bank of Canada is planning for its CBDC to live on an architecture that could potentially evolve over the next few decades and grow in tandem with policy changes and goals.
At the moment, other technical details of the CBDC are undetermined. The bank did not reveal the technology the CBDC might operate on; whether it would be a token-based currency or it would work with an account-based model, or how it could create a cryptocurrency that works even when the power is out.
These are some of the details that would take shape once the project manager starts the three-year tenure. During that period, the bank would also work on building a CBDC pilot system.
The Crypto Race is On
This latest development makes Canada one of the strongest contenders in the race to create a CBDC. Several countries around the world are discussing the issue of a national cryptocurrency, with some of them, including China, on the cusp of releasing their official CBDC. However, only a few of these countries have actualized their findings to a level that the Bank of Canada has achieved so far.
It should be clear that the Bank of Canada has not committed to issuing a CBDC yet. Officials in the bank downplayed the need to have a CBDC back in February, with some of them arguing that there is no compelling case for the country to issue its digital currency unless a private cryptocurrency like Libra goes live.
The Bank of Canada also did not commit to ultimately issue a CBDC in its job posting. However, it is exciting that more central banks are thinking about digital currencies and their future in the dynamic world of finance.