Agreeing with other central banks on CBDC implementation is not a priority for the Bank of Canada (BOC). This was stated by Dinesh Shah, director of financial technology research, in an interview with The Block.

Editor in January 2020, BIS and five central banks formed a working group to consider scenarios for the use of the national digital currency in their jurisdictions.

In October, BOC President Tiff Macklem said countries should take a coordinated approach to developing CBDCs.

However, Shah believes that the distribution of digital currencies does not require coordination due to the difference in payment systems. According to him, the international working group exists mainly to consolidate research.

“Although there is no consensus, this open exchange of ideas is very valuable.”

According to Shah, CBDC work at BOC began around 2010. The central bank’s interest was not driven by the emergence of cryptocurrencies, but by the trend in demand for cash.

“As in many other countries, there is a steady decline in daily cash use, although their numbers in the economy are increasing,” he said.

He stressed that the central bank has not yet made an official decision on the launch of CBDC.

The research is at an early stage, so it is unknown whether the blockchain technology underlying most crypto assets will be used for digital currency.

“But it’s still on our list of potential opportunities,” Shah said.

Recall that in March 2021, the BIS called on central banks to cooperate in the field of CBDC. In June, the organization’s experts said that national digital currencies have moved from concept to practical implementation.