• About Us
  • Careers
  • Contact
No Result
View All Result
Monday, October 13, 2025
DeFi Planet
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Market Analysis
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverse
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Market Analysis
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverse
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
No Result
View All Result
Home Explore CBDC

Why Canada’s Central Bank is Halting Plans for a Digital Canadian Dollar

17 October 2024
in CBDC, Market Analysis, Regulation
Reading Time: 7 mins read
103 6

Contents

Toggle
  • Why Canada’s Central Bank paused its CBDC initiative
  • Implications of the Bank of Canada’s decision for the country’s crypto market
  • Global trends on CBDC development and Canada’s interesting stance

Last updated on October 30th, 2024 at 03:26 pm

After a lengthy spell of research and public consultations that began in 2017, the Bank of Canada has decided to discontinue its efforts to create a digital version of the Canadian dollar.

This decision comes even as the central bank’s study resulted in a staff discussion paper titled “The Role of Public Money in the Digital Age,” released in 2024. This paper outlined the potential benefits of a digital currency, including the ability to maintain monetary stability and control as technology continues to evolve.

The sudden halt to these efforts has raised questions about why the Bank of Canada would pull back after investing years in research and public engagement, which was albeit driven by the decline in cash usage and the growing shift toward digital payments.

Why Canada’s Central Bank paused its CBDC initiative

In December 2023, the Bank of Canada concluded a six-week online consultation regarding the potential issuance of a digital Canadian dollar. Nearly 90,000 Canadians participated in the survey, revealing significant concerns about privacy and trust in institutions. Although many believed that cryptocurrencies are a widely accepted form of payment, the results indicated that 85% of respondents would not use a digital Canadian dollar, with transaction privacy being the top reason why.

Respondents' preference to use a digital Canadian dollar in the future. Source: Bank of CanadaRespondents' preference to use a digital Canadian dollar in the future. Source: Bank of CanadaRespondents' preference to use a digital Canadian dollar in the future. Source: Bank of Canada
Respondents’ preference to use a digital Canadian dollar in the future. Source: Bank of Canada

This lack of trust extended beyond just the concept of a digital currency; 79% of participants doubted the Bank of Canada’s ability to protect sensitive information. Additionally, 78% felt their feedback would not influence decision-making.

Respondents’ trust in Bank of Canada to issue a secured digital Canadian dollar
Respondents’ trust in Bank of Canada to issue a secured digital Canadian dollar. Source: Bank of Canada

In fact, 92% would prefer their current payment methods to a digital Canadian dollar. This overwhelming distrust obviously creates substantial challenges for any future digital currency rollout.

Respondents' preference on using a digital Canadian dollar instead of their current payment methods
Respondents’ preference on using a digital Canadian dollar instead of their current payment methods. Source: Bank of Canada

Given these findings, the Bank of Canada decided to halt its digital currency plans. In a statement to CBC, the bank said that despite extensive research into the technology and economics of a secure public money system, launching a digital Canadian dollar is not a priority at this time. Instead, the bank will focus on broader research into domestic and global payment trends.

Governor Tiff Macklem echoed this during a speech on September 24, 2024, titled Economic Growth During Uncertain Times. In it, he explained that while the bank had developed significant knowledge about central bank digital currencies (CBDCs), there wasn’t a compelling reason to pursue one for Canada at this moment.

Though this isn’t surprising, the central bank has hinted at this move; the decision bears significant weight in view of the country’s growing crypto market and the global trend on CBDCs.

Implications of the Bank of Canada’s decision for the country’s crypto market

The Canadian crypto market has steadily grown, with over 3 million Canadians owning digital assets in 2024. By 2028, it’s expected that around 32% of the population—12.95 million users—will participate in the crypto space.

This growth has largely been driven by retail investors. In fact, 8 out of 10 crypto platforms in Canada have expanded their services to meet growing retail demand. However, without a CBDC, Canada’s market dynamics may shift in an interesting direction.

By choosing not to introduce a CBDC, Canada gives private cryptocurrencies, like Bitcoin and Ethereum, room to expand without direct competition from a government-backed digital currency. As Dean Skurka, CEO of Canadian crypto platform WonderFi, pointed out, there is a resurgence in retail crypto interest in 2024, particularly after the Bank of Canada’s recent interest rate cuts, which boosted public spending.

With no immediate plans for a CBDC, Canada’s financial institutions and crypto platforms may see this as an opportunity to innovate. By enhancing trading, custody, and settlement services, they can capture a larger share of the growing retail market. This contrasts with countries that have launched CBDCs, where private platforms must compete with state-backed alternatives that can limit innovation.

However, the absence of a CBDC also introduces potential risks. Some institutional investors still view private cryptocurrencies with skepticism, preferring the security and legitimacy of a government-issued digital currency. This could limit Canada’s ability to attract the level of institutional investment seen in countries with CBDCs, where more stable, regulated digital currencies may inspire greater confidence.

Global trends on CBDC development and Canada’s interesting stance

Globally, the development of CBDCs is becoming a dominant trend. The IMF and Bank for International Settlements (BIS) have endorsed CBDCs as the future of money, praising their potential for enhancing government control, reducing fraud, and streamlining cross-border payments. Countries like China and the Bahamas have already launched their CBDCs, while others like the United States, Russia, and Iran are quickly advancing their initiatives.

The Bahamas, for example, introduced the world’s first CBDC, the “Sand Dollar,” in 2020, and continues to enhance its digital economy through the currency. Iran has already rolled out its digital rial for micropayments, and Russia’s largest bank, Sberbank, is planning to offer the digital ruble by 2025. These countries are betting on CBDCs as a way to improve efficiency in cross-border payments and provide more secure, traceable transactions.

By not pursuing a CBDC, Canada risks falling behind in this evolving global ecosystem. As more countries adopt CBDCs, cross-border transactions are likely to become increasingly dominated by these state-backed digital currencies. This could put Canada at a disadvantage in global trade, as it may not be able to tap into the efficiencies that CBDCs might offer for transferring value across borders.

On the flip side, Canada’s decision to allow decentralized cryptocurrencies to flourish without direct competition from a CBDC could attract businesses and investors who prioritize financial autonomy and privacy. Bitcoin, Ethereum, and other cryptocurrencies, which operate independently of central authorities, align with the ethos of financial freedom that many crypto enthusiasts champion. 

By avoiding the complexities of state surveillance and control that come with CBDCs, Canada is positioning itself as a market-driven financial environment, offering citizens and institutions more freedom in managing their digital assets.

Only time will tell whether this decision leads to missed opportunities for Canada or newfound freedoms for DeFi in the country.

 

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence. 

 

If you would like to read more market analyses like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.

Take control of your crypto  portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”

Share63Tweet40Share11
Olayinka Sodiq

Olayinka Sodiq

Olayinka Sodiq is a seasoned crypto and blockchain writer with over 5 years experience in the fintech industry. With a deep passion for decentralized technology, Olayinka crafts insightful and engaging content that demystifies complex blockchain concepts for a global audience. His work has been featured in leading publications (Business Insider Africa, Tradingbeasts.com, and The Trading Bible), where he is known for blending technical expertise with a clear, accessible writing style. Olayinka holds a degree in English and is a sought-after speaker at blockchain conferences worldwide

Related Posts

Your Weekend Crypto Roundup | October 2025 (Week 2)
Market Analysis

Your Weekend Crypto Roundup | October 2025 (Week 2)

10 October 2025
Market Analysis

Your Weekend Crypto Roundup | October 2025 (Week 1)

3 October 2025
source: cryptoticker.io
Crypto

Thai SEC Eyes Expansion of Crypto ETFs Beyond Bitcoin to Attract Young Investors

2 October 2025
Crypto

What $1 Billion in Liquidations Means for Market Stability

1 October 2025

Editors Picks

Web3 in 2025: Where We Are, What’s Next, and What the Data Says

Web3 in 2025: Where We Are, What’s Next, and What the Data Says

byOlayinka Sodiq
21 July 2025
0

What Is a Rebase Token and How Does It Work?

What Is a Rebase Token and How Does It Work?

byOlajumoke Oyaleke
28 June 2025
0

What Are DeFi Options Vaults, and How Do They Work?

What Are DeFi Options Vaults, and How Do They Work?

byOlajumoke Oyaleke
26 June 2025
0

What Are Teardrop Attacks in Crypto?

byOlajumoke Oyaleke
17 June 2025
0

What Are Fractional NFTs, and How Do They Work?

What Are Fractional NFTs, and How Do They Work?

byBlessing Lisafi
7 February 2024
0

Read More

Chain of Thoughts

The Aesthetics of Web3: Why Vibe Matters in Decentralized Communities

The Aesthetics of Web3: Why Vibe Matters in Decentralized Communities

byOlu Omoyele
27 September 2025
0

...

Zero-Knowledge Everything: Trust, Privacy, and Verification in the Digital Age

Zero-Knowledge Everything: Trust, Privacy, and Verification in the Digital Age

byOlu Omoyele
30 August 2025
0

...

What Happens When AI Gets a Wallet?

What Happens When AI Gets a Wallet?

byOlu Omoyele
31 July 2025
0

...

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

byOlu Omoyele
30 June 2025
0

...

Markets Update

Your Weekend Crypto Roundup | October 2025 (Week 2)

2 days ago

Your Weekend Crypto Roundup | October 2025 (Week 1)

1 week ago

What $1 Billion in Liquidations Means for Market Stability

2 weeks ago

Why Crypto’s Cross-Chain Future Depends on Regulatory Readiness

2 weeks ago

MicroStrategy’s Debt-Fueled Bitcoin Buys: Smart Treasury Move or Dangerous Precedent?

2 weeks ago

XRP Reserves Spiked by 1.2B: What Does This Mean for Market Adoption?

2 weeks ago
Read More

Events

  • No events
  • Spotlight

    All about Ethereum
    All about Algorand
    All about Bitcoin
    All about Gora

    Press Releases

    Crypto Market Update: Pepeto Advances Presale With Staking Rewards and Live Exchange Demo

    bychainwire
    11 October 2025
    0

    Phemex Launches Market Confidence Campaign to Support Traders Through Volatility

    bychainwire
    11 October 2025
    0

    Eightco Holdings Inc. ($ORBS) Expands its Strategic Vision into the Enterprise

    bychainwire
    10 October 2025
    0

    Whale.io Launches Battlepass Season 3, Featuring $77,000 in Crypto Casino Rewards

    bychainwire
    10 October 2025
    0

    Dreamcash Celebrates 100,000 Waitlist Signups with Exclusive $50k Giveaway Series

    bychainwire
    9 October 2025
    0

    Read More

    ADVERTISING

    ABOUT

    TEAM

    CAREERS

    CONTACT

    TERMS & CONDITIONS

    PRIVACY POLICY

    © Copyright 2025 DeFi Planet

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In

    Add New Playlist

    No Result
    View All Result
    • News
      • People
      • Business
      • Crime
      • Regulation
      • Crypto
      • CBDC
    • Market Analysis
      • Bitcoin
      • Ethereum
      • Stablecoins
      • Altcoins
      • Crypto ETFs
      • Memecoins
    • Policy
    • Articles
      • Press Releases
      • Opinion
      • Explainers
      • Guest Post
      • Sponsored
    • Directory
      • Companies
      • People
      • Products
      • Wallets
    • Multimedia
      • Videos
      • Podcasts
    • Learn
      • DeFi Basics
      • Tutorials
      • Reviews
      • Blockchain Fundamentals
    • Research
      • Case Studies
    • Explore
      • DeFi
      • Crypto Gaming
      • NFT
      • DAO
      • Metaverse
      • Glossary
    • Jobs
    • Markets Pro
      • DeFi Planet Pro
      • Spend Crypto
      • Swap Crypto
      • Coin Prices
      • Crypto Exchanges
      • Crypto Analyzer

    © Copyright 2024 DeFi Planet   |   Terms & Conditions   |   Privacy Policy

    -
    00:00
    00:00

    Queue

    Update Required Flash plugin
    -
    00:00
    00:00