In filings submitted on December 13 and December 19, the Bank of Canada claimed ownership of terms such as "digital dollar," "digital Canadian dollar," and "central bank digital currency" in both official languages according to the Trademarks Act.
This is a warning shot!
To keep up to date with where each countries in the world is with adopting Central Bank Digital Currencies, please visit this link to the CBDC Tracker website, where you will find also sorts of useful information on where Canada and other countries are with CBDC's - Read article about how Canada and Singapore are planning to use a cross border CBDC
# 1 - 130 countries, representing 98 percent of global GDP, are exploring a CBDC. In May 2020, only 35 countries were considering a Central Bank Digital Currency. A new high of 64 countries are in an advanced phase of exploration (development, pilot, or launch).
# 2 - 19 of the G20 countries are now in the advanced stage of CBDC development. Of those, 9 countries are already in pilot. Nearly every G20 country has made significant progress and invested new resources in these projects over the past six months.
# 3 - 11 countries have fully launched a digital currency. China’s pilot, which currently reaches 260 million people, is being tested in over 200 scenarios, some of which include public transit, stimulus payments and e-commerce.
# 4 - The European Central Bank is on track to begin its pilot for the digital euro. Over 20 other countries will take steps towards piloting their Central Bank Digital Currency in 2023. Australia, Thailand and Russia intend to continue pilot testing. India and Brazil plan to launch in 2024.
# 5 - In the US, progress on retail CBDC has stalled. However, other G7 banks, including the Bank of England and the Bank of Japan are developing Central Bank Digital Currency prototypes and consulting the public and private sectors on privacy and financial stability issues.
# 6 - The US is, however, moving forward on a wholesale (bank-to-bank) CBDC. Since Russia’s invasion of Ukraine and the G7 sanctions response, wholesale CBDC developments have doubled. There are currently 12 cross-border wholesale CBDC projects.
A substantial transformation may be in store for the Canadian loonie, courtesy of the Bank of Canada's proposed digital currency. Here's what you need to know about the potential impact on the economic landscape.
The introduction of a digital variant of the Canadian dollar could reshape the nation's economic dynamics. However, the question remains: is this change for the better? Explore the Bank of Canada's vision for a digital loonie.
Understanding Central Bank Digital Currency A Central Bank Digital Currency is a digital currency issued and regulated by a country's central bank, with the Bank of Canada being the issuer in this context. Similar to physical cash, it becomes a liability of the Bank.
Simply, a Central Bank Digital Currency operates much like cash but in a digital form, offering convenience and transcending geographical distances.
While it might be tempting to equate Central Bank Digital Currency with cryptocurrency, there are key distinctions. A CBDC is legal tender, genuine money regulated by the central bank, in contrast to cryptocurrency, which is often considered proxy money. Cryptocurrencies lack stability and are susceptible to price volatility due to being private and unregulated.
At present, Canada might not urgently need a CBDC, but the landscape could evolve. However, a digital dollar might become necessary for Canada to remain competitive globally, especially as other nations explore CBDCs.
The decline in the use of cash as a payment method, coupled with the rise of digital alternatives like credit cards and mobile transactions, also contributes to the discussion. Still, the country will likely retain cash for its unique advantages, such as being free, anonymous, stable, and secure.
As of now, the Bank of Canada doesn't see an immediate need for a digital dollar but acknowledges the importance of readiness for a CBDC if the situation changes. It asserts that a digital dollar won't replace cash, and physical money will continue to be supplied as long as there's demand.
While a CBDC can enhance Canada's global competitiveness, concerns about security and privacy arise. Experts caution about potential vulnerabilities and the risk of money laundering. The necessity of identifying users for security purposes raises privacy issues, prompting a delicate balance in designing a secure yet private digital currency.
Although the digital loonie remains a distant reality, its eventual creation appears increasingly likely. Canadians concerned about the implications can actively participate in shaping the future by engaging in consultations and communicating their concerns to public officials.
The short answer is "who knows". But if the Canadian government in all its wisdom decides to ditch physical FIAT currency, and instead moves to a Canadian Central Bank Digital Currency, then in our opinion there are two products you should be stocking up on right now, and they are 1oz Gold Maple Leaf coins and 1oz Silver Maple leaf coins (all post 2014) as you do not need to test them to know that they are real and not fake due to the amazing anti-counterfeiting technologies that provide.