Bank of Canada joins global group to discuss digital currency use

Central banks around the world have been discussing the possibility of digital currencies as the use of cash continues to dwindle in lieu of electronic and online payment systems, according to CTV News.

The Bank of Canada has joined the study group alongside the European Central Bank, the Bank of Japan, the Bank of England, the Swedish Riskbank and the Swiss National Bank.

The Swedish central bank began studying the issue several years ago and has already implemented a pilot project to deal with the country’s declining use of cash however they haven’t reached a final conclusion on whether or not to keep the project. The Bank of Canada stated in a press release that they will assess the potential for digital currencies in their home jurisdictions.

Bitcoin and other cryptocurrencies currently in circulation are not suited for paying for things because their value can fluctuate too quickly. The Libra project, backed by Facebook, is a digital currency that has been called a stable-coin because it is tied to existing currencies. The major backers in Bitcoin such as Visa, MasterCard, PayPal and eBay have all left the association in order to oversee Libra as it comes under fire from regulatory authorities.

The goal of the group is to assess technical issues and share their knowledge of impending technologies. Benoit Coeure, a former top ECB official and Jon Cunliffe, deputy governor of the Bank of England will serve as the group’s co-chairs.