Trudeau’s rival pushes to ban CBDC in Canada, preserves cash use

Conservative Party Leader Pierre Poilievre aims to protect the use of cash by promising to ban central bank digital currencies in Canada.

Canadian Conservative Leader Pierre Poilievre has strongly opposed the development of a central bank digital currency in Canada last X postHe vowed to protect the use of cash and resist the government’s drive for economic digitization.

Prime Minister Justin Trudeau’s rival has called for an end to the creation of a CBDC and backed Canadian House of Commons member Ted Falk’s Bill C-400, which aims to ban the circulation of such a currency.

It’s time to end the creation of central bank digital currencies in Canada.@MPTedFalkUS Bill C-400: The central bank would ban digital currency, protect the use of cash, make businesses accept it, and maintain cash infrastructure.

Less government control = more freedom and privacy… pic.twitter.com/i2zyln69Tj

— Pierre Poilievre (@PierrePoilievre) August 11, 2024

The bill, introduced in June, provides for the development and implementation of a framework to ensure cash continues to be available across Canada. It also amends the Currency Act and the Bank of Canada Act to remove the Governor’s Council’s authority to call coins and banknotes.

The timeline for Bill C-400 becoming law is uncertain, as it will depend largely on the political climate, public opinion and the outcomes of parliamentary debates and committee reviews; a process that could take several months to a year.

Canada prepares for potential CBDC launch

The CBDC debate in Canada comes as the Bank of Canada explores the potential need for digital currency in the context of increasing global interest and technological advances in the financial sector.

Although no formal decision has been made, the central bank is exploring scenarios where a CBDC might be necessary and says it will “establish the capacity to issue a general-purpose, cash-like CBDC if needed.”

These could include a decline in cash usage or the widespread adoption of alternative digital currencies, potentially challenging the Canadian dollar’s ​​status as the primary payment method. However, the central bank stressed that any move towards a CBDC would require “the full support and approval of the Government of Canada and acceptance by the Canadian people.”