Is the concept of “experimenting with a digital dollar” the financial services industry’s version of the hula hoop? Flash in the pan sizzle that will soon crash and fizzle?
Bank of Canada has put its toe in that digital dollar water by announcing this week that it was working with one of the largest banks in the land (of Canada) to create its own electronic version of the Canadian dollar: CAD-COIN, a blockchain-based digital fiat currency.
While this experiment is still in its early stages, Carolyn Wilkins, senior deputy governor for Bank of Canada, did reveal a bit of what this plan entails. Her statement indicated that, while the bank is testing the concept, the reality is far off.
“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,” she said in a statement. “The