Moreover, the success This paper sets out to explore two major forces of any digital loonie will need to be backed that will dictate the emergence, spread and up by the ability of the authorities to provide eventually the success of retail CBDC globally: holders with confidence and trust in the digital first, the potential for a foreign retail CBDC to technology that will be employed. [...] Regulatory aspects the threat of the wider adoption of the US dollar, will also be critical since these will influence the or even the recommendation that we consider degree to which policy makers will impose non- adopting the US dollar by relinquishing the loonie.9 price impediments in the ability of individuals to However, the desire to retain economic policy digitally hold and transact in sever. [...] 9 The last time there was a surge of interest about the future of the Canadian dollar was in the late 1990s, on the eve of the European 6 Although the introduction of retail CBDCs is widely anticipated, the Monetary Union and concerns over the relative performance of the timing, nature and technical platforms used to make them available to the Canadian economy vis-à-vis its largest trading partner. [...] of different notes less the costs of production and distribution or, more simply, as the change in the real value of the money supply (which 15 The authors provide an excellent summary of the debate over whether combines the inflation tax, if money contributes to rising prices, and the US dollar’s dominance is coming to an end. [...] Once again, the gap between the highest border relations, or at least reflect the reduction and lowest estimates is not trivial, and the in barriers to enhance cooperative behaviour, substantial variation over the years, as proxied by this will reduce the difficulties encountered that the standard deviation of the estimates shown, might prevent the global use of retail CBDCs.
- Pages
- 30
- Published in
- Canada
