The Bank of Canada, after years of exploring the possible introduction of a digital currency in Canada, is no longer pursuing this idea.
The proposed “digital loonie” would have been a retail central band digital currency (CBDC) which could have been used for everyday purchases like groceries or transferring funds.
The central bank told CBC it has shifted its focus away from introducing a digital Canadian dollar. Instead, it said it is focused on preparing for the ongoing evolution of payments both within Canada and abroad through policy research and analysis.
The Bank of Canada initiated a research project in 2017 in response to the rapid digitalization and shifts in Canadians' purchasing habits, later conducting a public consultation in 2022.
"The Bank has undertaken significant research towards understanding the implications of a retail central bank digital currency, including exploring the implications of a digital dollar on the economy and financial system, and the technological approaches to providing a digital form of public money that is secure and accessible," the bank said in an email statement to CBC.