CBDC is a digital currency issued by a central bank rather than by a commercial bank. CBDC is a form of central bank electronic money that households and businesses could use to make payments. The present concept of CBDCs may have been partially inspired by Bitcoin and similar blockchain-based cryptocurrencies, but differs from such a virtual currency and cryptocurrency in that a CBDC is or would be issued by a state. You would think of a Canadian CBDC as a version of the current Canadian dollar that is a digital version.

Currently, the Canadian government does not have plans to issue a CBDC. However, they are currently making plans to do so, should the need arise. Ultimately, Parliament and the Government of Canada will determine if or when to issue a CBDC. Note that bank notes will likely continue to be available for Canadians, even if a central bank digital currency were to be introduced.

The Bank of Canada would want this CBDC to be private, safe, and universally accessible. The bank is currently engaging with numerous stakeholders to ensure an understanding of how a CBDC would affect everyone. Again, the Bank of Canada is not sure if they ever will issue a CBDC in the future.