Bank of Canada Demos Blockchain-Based Digital Dollar

The Central Bank of Canada revealed yesterday it is developing a digital version of the Canadian dollar based on blockchain technology.

AccessTimeIconJun 16, 2016 at 12:30 p.m. UTC
Updated Sep 11, 2021 at 12:19 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Central Bank of Canada revealed yesterday it is developing a digital version of the Canadian dollar based on blockchain technology.

Called CAD-coin, the project is part of a wider exploration of the emerging technology codenamed Project Jasper that was reportedly unveiled during a private presentation, according to The Financial Times. Other major banks including Bank of Montreal, CIBC, Royal Bank of Canada, Scotiabank and TD Bank, as well as banking consortium startup R3CEV, are said to be involved in the effort.

A slide posted by Forbes provides more details, indicating that the Bank of Canada is testing a system in which participants would post cash to be held by the bank that would then be converted into CAD-coin.

Verified counterparties would then process transactions, and the central bank would reserve the right to destroy CAD-coins as needed.

Screen Shot 2016-06-16 at 8.43.09 AM
Screen Shot 2016-06-16 at 8.43.09 AM

The unveiling notably precedes a scheduled speech by Bank of Canada senior deputy governor Carolyn Wilkins, set for Friday, that will find the central bank issuing more details about the program and its stance on the technology.

Further, the announcement comes just a day before the Bank of England is expected to divulge further details about its interest in blockchain technology during a speech by governor Mark Carney in London.

Just last week, representatives from more than 90 central banks gathered at the Federal Reserve for a question-and-answer session in which presentations and discussions were held on blockchain and its potential role in finance.

The Bank of Canada did not respond to requests for further information at press time.

Canada map via Shutterstock; Bank of Canada slide via SocialWallet founder Kyle Kemper

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.