Canada’s central bank puts aside its digital loonie CBDC plans

The Bank of Canada has decided to put aside its plans to issue a central bank digital currency (CBDC) called “digital loonie” without giving a specific reason, Decrypt reported. The central bank began researching CBDCs in 2019, and then carried out a public consultation in 2022. The bank even released a research paper in early 2024 that affirmed the potential of CBDCs to help Canada maintain monetary sovereignty and financial stability. However, CBDCs remain comparatively unpopular with many Canadians, with many renowned figures in the Canadian government expressing skepticism and opposition to the idea of a digital loonie.