As the Bank of Canada prepares for a digital Canadian dollar, democratic concerns loom large
As the Bank of Canada prepares for a digital Canadian dollar, democratic concerns loom large
While a digital national currency does have the potential to mitigate key financial issues, we cannot ignore the democratic risks such a currency could introduce without safeguards.
One missed opportunity is that the digital dollar doesn't seem to circumvent the need for a private bank account. We currently have to have those in order to participate in the payment processing system that the private banks partially underpin. In a digital dollar system, there isn't a fundamental need for the private banks to act as intermediaries between Canadians and the BoC. If the digital dollar allowed this, then the private banks would have to offer additional value for depositing money with them, besides access to the payment processing system. Alas, last time I checked, that wasn't the case. It is a Canadian tradition to not endanger the revenue streams of our big corporate darlings. Which isn't totally lost on me, given how many people they employ. 🤷
This is the first I’ve heard of plans for a digital currency in Canada. Do you have a link?
First I heard too, I found this from the Bank of Canada.
tl;dr Its not crypto and they don't have immediate plans to implement it, but they're exploring the idea and just completed a public consultation on it.
What is a digital Canadian dollar? Simply put, a digital Canadian dollar would be a digital form of the cash in your wallet. Like cash, it could buy the things you need. But the advantage is that you could also use it for online purchases and to transfer money between family and friends. And businesses could use it to pay each other.
Digital form of cash in your wallet? Like a debit card linked checking account or a prepaid credit card (i.e. Koho)? Everything described seems to be exactly what we can already do since forever. LOL
This is the link OP provided
The article cites some very good points, The government could indeed control how your money gets spent and they could and would effectively shut you down as a functioning member of society if you got on their bad side. Let's be clear I am not saying that only the liberals would do this,I'm sure the Conservatives or the NDP wouldn't roll this back if they came to power and they had the ability to control your pocket book. No politician gives back a new power when they get it, despite any special situation requiring the power ending. No, the liberals wouldn't be the only party to use such an ability, but they are the party the had the trial run. As for the "need" namely mitigating two potential future threats of the mass adoption of external currencies and the next financial crisis. Precisely how easy is it to walk into a store and pay for your milk in bitcoin, or to pay your electricity bill with Yuan...the answer is you can't so that first argument is basically smoke and mirrors. As for mitigating a financial crisis...if the same people who control our current fiat currency also control any potential digital currency...l am unclear as to this mechanism of mitigation will work. Cash is king but cash is also anonymous meaning you can spend it on what you like or give it to anyone you want...and the government gets no say. With digital currency that all goes away.
well, with all the people complaining about the money laundering, tax evasion cash deals etc, going digital means it's all verifiable.(part of why China is also considering cause their corrupted finds way to move money out despite of strict regulations.)
Your kidding...right? Very very few people are complaining about average citizens money laundering or tax evasion cash deals. Beside the really big money laundering and tax evasion is being done by big corporations and they are already verifiable, and in the case of the TE it's bloody well legal because of tax laws set up to help corporations. In relation to money laundering big corporations when they do get caught, they get a slap on the wrist. This can and will be used to monitor and control how you use your money...period. And if you step out of line, it will be used to shut you down.