The Bank of Canada says creating a digital version of the dollar is technically feasible, but public distrust and limited interest make broad adoption unlikely. Blacklock's Reporter says the bank emphasized that it has no current plans to launch a central bank digital currency despite completing a feasibility study showing it could work for basic payments.The study, A Retail CBDC Design For Basic Payments Feasibility Study, outlined how a government-backed digital currency could be implemented with existing technology. .“We identify a promising architecture well suited for basic payments,” wrote researchers. But they cautioned the report was not a recommendation to proceed, nor an endorsement of any specific system or vendor.The bank reiterated that decisions about whether to issue such a currency lie outside the scope of the analysis.A separate federal study released last October, The Consumer Value Proposition For A Hypothetical Digital Canadian Dollar, found most Canadians were skeptical of a Bank-issued cryptocurrency.Many saw it as unnecessary or even intrusive. “Certain groups may strongly resist a digital dollar if they conflate its launch with the end of cash issuance,” said the report..Although some interest exists — especially among students and younger adults entering the workforce — the study found it rarely translated into actual willingness to use the product. Older Canadians were particularly distrustful, questioning both privacy and security.“Most participants felt well served by current means of payment,” wrote researchers. Even those who favored a digital currency said they didn’t see themselves using it often.The same study noted that the groups who might benefit most — such as the financially vulnerable — were often the least willing to adopt a digital dollar. Successful uptake, it said, would require low costs, privacy controls, universal merchant acceptance, and user-friendly features.An earlier 2023 Bank of Canada report, Unmet Payment Needs And A Central Bank Digital Currency, found a sizeable portion of Canadians still avoid online transactions altogether. It estimated that 11% of internet users won’t bank online, and 16% refuse to shop online.
