Why Would Canada Need Its Own Digital Currency?

Why Would Canada Need Its Own Digital Currency?

March 27, 2020

Crypto is many times referred to as a future of payments and many countries are investing to make the currency even more popular around the world. Although there are some problems that the crypto faces today, it still remains to be very popular among many people. 

Different countries have stated their interest in the crypto, and some even managed to create one of their own. Canada works very hard to improve its crypto game, and recently, the Central Bank of the country announced that they are planning to start working on their own digital currency. 

This can bring a lot to the country and Canada is ready to face the challenges that could be along the way. Canada has mostly always had a positive attitude towards the crypto market and this step further proves this. 

The Bank of Canada has not officially started issuing its own digital currency but in the future, they do not rule out the possibility of it. The Deputy Governor of the Bank of Canada said that there is no compelling case at the moment, but the central bank is working on a prototype and the Bank will have a consultation with many different stakeholders to potentially design and create a central bank digital currency.

As bitcoin continues to have its identity crises only in Canada but around the world as well, the popularity of digital currencies seems to be rising. 

What can Canada’s own digital currency change? 

There are many things that could come with Canada having its own digital currency. First of all, as of now, there are a lot of private digital currencies that are widely used in Canada, and the central bank sees this fact as some kind of threat. By having their own currency, the Central Bank can come up with many benefits that will help their currency to become more popular and at some point become the most used digital currency in the country. 

The representatives of the central bank have said that even if they are not able to issue their own version of digital currency, they will try their best to modernize the payment system in the country. As they say, since the world is changing every day, it is very hard to say something in advance, but the bank is ready to keep up with the development of the world. 

Importance of digital currency 

Digital currency is very important in today’s world, there are many countries that are coming into terms that at some point, they will also have to work on the development of the field. As if today, crypto is being used in many different fields. 

In Canada, the usage of crypto is very popular. It is being used in many different fields, including the very popular, gambling sector. Gambling is in general legal in Canada, but different parts of the country have the ability to control and regulate the sector. 

One of the most important factors for the popularity of crypto in the country could be because of the gambling sector. Since the beginning of the crypto popularity, gambling platforms have been using them very actively. This has ensured the growing popularity of crypto in Canada and around the world as well. 

One of the biggest reasons why the gambling sector is such a huge fan of crypto is the fact that it offers gamblers the ability to have a secure and private environment without officials being able to control their transactions or spendings. This is very important in the gaming sector since many players prefer to save their gaming for themselves. 

Crypto is actively used in the gambling sector of Canada, there are many bonuses and promotions offered for crypto users in the country. Hundreds of different real money Canadian slots are being created every day for Canadian gamblers and they are very popular among crypto users. 

What can Canada’s own digital currency mean for the US? 

Since the two countries are very close with one another further development of digital currencies in Canada can have a significant effect on the policies in the US. As of today, US politicians are very much against the development of the field. Many even go as far as requesting a total ban on the field from the government. If the Canadian government finally manages to have its own digital currency, things can change a lot for crypto users in the US.

The thing is that the economies of Canada and the US are closely intertwined with one another, they are exchanging labor force, services, products, and many other things all the time. The attitude of Canada can also have a huge influence on future development in the US. This can have the ability to change the minds of many politicians, especially those who appreciate their relations with Canada.

But there is a lot more to it. If at some point, Canada decides to transfer to digital currencies altogether, the US officials might have to think twice before banning the field. This can have a huge effect on many different fields in the US. 

Challenges 

Although there are many advantages of having a state-issued digital currency, there still are some challenges that could face the mass adoption of the crypto. For example, there is always a chance for the entity to become a victim of a cyber-attack, which can completely destroy the business. Also, the issuer can find it hard to keep up with technological developments and at some point can become a huge failure.

There still are huge debates on the way national digital currencies could work. Many say that this can have huge benefits for countries and for the field as well since it has the ability to increase the knowledge about the field among different people.

There are many countries working very hard on the development of the field, including Sweden, which is one of the pioneers in the field.

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