According to Bank of Canada staff, the Canadian digital dollar should mimic the traditional currency in terms of availability and accessibility.
In a June 30 analysis note, Bank of Canada experts outlined some of the objectives of its central bank digital currency (CBDC). The analysis notes are research by the bank’s analysts, who are independent of the Board of Directors, and therefore do not necessarily represent the bank’s own view.
The expert group explained that the CBDCs should imitate the characteristics of traditional banknotes. This means that it should be available in Bitcoin System urban, rural and remote populations for people with or without bank accounts and that it can be used by everyone, including blind and partially sighted people.
A new type of ransomware targets Canadian Android users
The note indicated:
„A CBDC should be as accessible as cash.“
Understanding people’s needs
To maximize inclusiveness and ease of use, the note states that the bank should develop a CBDC that Canadians can use regardless of whether they own a smartphone or have access to the Internet. People should be able to conduct transactions with CBDCs even in regions with little or no network coverage and also during a power outage.
Bitcoin as a tool to fight authoritarian regimes: A critic of Vladimir Putin explains
As a first step in developing its digital dollar proposal, the Bank of Canada is seeking to understand the needs of its citizens through extensive consultations with user groups, is considering multiple design options and will launch a prototype prior to the main launch.
A Universal Access Device
To enable all citizens to use the CBDCs, the bank intends to work on a universally accessible device (UAD) that „incorporates visual and security elements as in traditional banknotes“. This is intended to ensure the safety of individuals against fraudulent devices and to create more confidence in the CBDC system.
The prototype proposed so far could be the size of a credit or debit card, so it could easily fit in people’s wallets. Experts say the UAD should allow people to load money from anywhere and operate without a centralized network. This device should also run for long periods on local power and have „potential access to natural energy sources“ such as sunlight.
The total amount committed on the Compound’s DeFi platform exceeds $1 billion
The note further suggested that if the ADU is not linked to an individual, it could easily be sold for the value of its contents.