Pierre Poilievre, leader of the Conservative Party, has promised to stop the introduction of a central bank digital currency (CBDC) in Canada. He says that cash should remain the main form of payment.
Poilievre recently wrote on X (formerly Twitter) that he didn’t like how the government was trying to digitize the economy and that he was strongly against the creation of a CBDC because he thought it would make people less likely to use cash.
Poilievre, a well-known opponent of Prime Minister Justin Trudeau, has backed Bill C-400, which was put forward by MP Ted Falk. The bill, which was introduced in June, aims to stop the creation of a CBDC and set up a system to make sure that cash will always be available in Canada.
CBDC Bill’s Progress Uncertain
It also wants to change the Currency Act and the Bank of Canada Act so that the Governor in Council doesn’t have the power to take coins and bills out of circulation.Bill C-400’s progress is unclear because it will depend a lot on the political environment, public opinion, and the results of debates and reviews in parliament. This process could take anywhere from a few months to a year.
What happens with the bill will probably depend on what people say about the future of funds and spending in Canada in general.At the same time that people in Canada are talking about a CBDC, the Bank of Canada is looking into the possibility of needing a digital currency.
As interest around the world grows and banking technology improves, the central bank has been looking into situations where a CBDC might be needed.
Some of these possibilities are a major drop in cash transactions or the common use of other digital currencies, both of which could make the Canadian dollar less useful as the main form of payment.
The Bank of Canada has done study on the issue of a CBDC but has not yet made a formal decision. The central bank has made it clear that any move toward a CBDC would need to be approved by the whole government and backed by most people.
