Speaking of alternative currency and technology associated with it, the bank of Canada is looking into the use of blockchain technology seriously. The new came out recently after the Senior Deputy Governor of the Bank of Canada, Carolyn Wilkins mentioned that the central bank will be making use of the distributed ledger technology to test interbank payments.
During the same session, Wilkins also made it clear that the country will not be getting a digitized version of Canadian Dollar anytime soon. The central bank is also not planning to conduct tests involving public money. The interbank payments system will be along the lines of the technology being developed by the international banking consortium for blockchain technology, in association with New York-based R3CEV.
While it is stated that the central bank’s goal is only to get a better understanding of the technology, there are reports about the Bank of Canada creating a concept digital dollar, which few publications have called CAD-Coin. One of the publications has quoted Ms. Wilkins saying –
“One of the bank’s many Fintech research projects … is to build a proof-of-concept wholesale interbank payment system using a distributed ledger, in conjunction with Payments Canada, R3 and Canadian banks.