Conservative Party Leader Pierre Poilievre pledges to ban a central bank digital currency in Canada, pledging to protect cash use.
Canadian Conservative Leader Pierre Poilievre voiced strong opposition to the development of a central bank digital currency in Canada in a recent X post, pledging to protect cash usage and resist the government’s push toward economic digitization.
Prime Minister Justin Trudeau’s rival called for an end to the creation of a CBDC and expressed support for a member of the House of Commons of Canada Ted Falk’s Bill C-400, which seeks to ban the introduction of such a currency.
It’s time to put an end to creating a central bank digital currency in Canada.@MPTedFalk’s Bill C-400 will: Ban central bank digital currency, protect cash use, ensure businesses accept it & maintain cash infrastructure.
Less government control = more freedom & privacy for… pic.twitter.com/i2zyln69Tj
— Pierre Poilievre (@PierrePoilievre) August 11, 2024
Presented in June, the bill provides for the development and implementation of a framework to ensure that cash continues to be available throughout Canada. It also amends the Currency Act and the Bank of Canada Act to remove the Governor in Council’s power to call in coins and notes.
The timeline for passing Bill C-400 is uncertain as it will depend heavily on the political climate, public opinion, and the outcomes of parliamentary debates and committee reviews, a process that can take several months to a year.
Canada prepares for potential CBDC launch
The debate over a CBDC in Canada comes as the Bank of Canada explores the potential need for a digital currency in the context of growing global interest and technological advancements in the financial sector.
Although no formal decision has been made, the central bank has been researching scenarios where a CBDC might be necessary, saying it will “build the capacity to issue a general purpose, cash-like CBDC should the need to implement one arise.”
These might include a decline in cash usage or the widespread adoption of alternative digital currencies, which could potentially challenge the Canadian dollar’s status as the primary method of payment. However, the central bank has emphasized that any move toward a CBDC would require the “full support and approval of the Government of Canada and acceptance by the Canadian public.”
Read more: Canada tightens crypto reporting measures in 2024 budget
