Bank of Canada scraps plans for retail CBDC as it realigns priorities

The Bank of Canada (BOC) has announced via its website that it is scaling back its research into a retail central bank digital currency (CBDC).
The Bank of Canada has conducted extensive research into CBDCs, but has decided not to do so in order to focus on more pressing issues.
The announcement did not mention a wholesale CBDC, but emphasized that research will continue.
The BOC has been clear about its stance on the need for contingency plans in case a CBDC is needed.
The shift in direction comes as the bank prepares for new responsibilities. The Bank of Canada said it will scale back its research into retail central bank digital currencies as other payments-related issues become more important.
"We are shifting our focus to broader payments system research and policy development," he said.
Canada is developing a retail-focused real-time rail payment system.
The association has over 100 members, including the Bank of Canada.
The BOC is a subsidiary of the Retail Payments Act of 2021.
The government plans to step up oversight of retail payments under the Financial Services Activities Act, which requires the central bank to take measures to prevent money laundering from November 2024.
The government plans to register around 2,500 small payment service providers that have been subject to regulatory oversight and supervise them based on operational risk standards starting in 2025.