Bank of Canada Shifts Focus from Retail CBDC to Broader Payment System Research

According to the latest update on September 21 from the Bank of Canada (BOC), the institution is progressively winding down its research on retail Central Bank Digital Currency (CBDC). While the update did not address the status of wholesale CBDC, it underscored that research in that area remains ongoing. The BOC has invested considerable effort into CBDC studies and is now redirecting its focus toward other significant priorities. The stance of the Bank of Canada on CBDC is clear: it aims to formulate a “contingency plan” for potential future needs. This shift in attention occurs as the bank gears up to undertake new responsibilities. Notably, the Bank of Canada highlighted, “As other payment system issues become more prominent, the bank is decreasing its work on retail CBDC and moving towards broader payment system research and policy development.”