The Bank of Canada is calling for a global approach on central bank digital currencies (CBDC) with G7 partners, Governor Tiff Macklem told Reuters.
Macklem claims the globally coordinated approach is needed in order "to prevent surprises" and to keep such tools from being used by bad actors. Currently, Canada's central bank is working on moving from proof of concepts to more fully executable plans the CBDC.
"If another country has one and we do not, that could certainly create some problems. So we want to make sure we are ready," Macklem said.
According to Macklem, the united approach would help countries in complying with AML/KYC procedures as digital currencies will move across borders way faster with new technologies.
Thus, the Canadian watchdog wants to be sure that all G7 countries are willing to share information on money flows.
"It will be important for us to share information on what each of us is doing, is planning on and on the timeline that we might do it on," he added.
At the same time, the Bank of Canada believes the country should first address and regulate the potential risks associated with CBDCs before the country launches one. The regulator also sees multiple risks in anonymous type of CBDC.
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