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The Positive Case for a CBDC

As part of its mandate to promote the economic and financial welfare of Canada, the Bank of Canada strives to support secure, reliable and efficient payment options for the benefit of all Canadians. Current activities that support this goal include providing liquidity to the financial system; overseeing prominent and systemically important financial infrastructure; and designing, producing and distributing bank notes.

However, as modern economies become increasingly digital—bringing not only competition challenges but also large economic opportunities—central banks are considering whether they should provide a form of digital central bank money for use in everyday retail payments.This paper by the Bank of Canada present additional substance to the public policy objectives of competition and innovation that could motivate the Bank of Canada to issue a central bank digital currency (CBDC).