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Edited by Kabir903 at 22-12-2023 09:39 PM
Canadian Central Bank Deputy Governor: If Libra fails, why bother issuing?
In a statement, the Deputy Governor of the Canadian central bank mentioned that the consideration for issuing Central Bank Digital Currency (CBDC) would only arise under two conditions: first, a significant decline or even extinction of physical cash; and second, widespread use of private cryptocurrencies.
Timothy Lane further emphasized that a potential shift in the traditional financial system might occur only if private cryptocurrencies gain extensive adoption. He then characterized such cryptocurrencies as "a monopolistic currency that weakens competitiveness, privacy, and poses a threat to the sovereignty of Canadian currency."
According to analysis by foreign media, the only project currently meeting these criteria is Facebook's stablecoin project, Libra. Although its launch schedule remains uncertain, Facebook initially expressed the intention to propel Libra towards becoming a "borderless currency." The goal is to transcend the existing currency system by creating a "globally usable" cryptocurrency, fostering international trade and financial development, and challenging the status of physical cash.
In other words, if Libra fails to succeed, why would the central bank go through the trouble of issuing CBDC and prematurely phasing out the long-standing and effective cash transactions? Regarding this, Timothy Lane expressed that it is difficult to predict whether Libra will fulfill its promises or achieve its goals. However, this uncertainty will indeed impact the central bank's future decisions in dealing with revolutionary currency technologies. |
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Post time 20-12-2023 21:33:11
