Digital Currencies and Fintech

Understanding the benefits and risks of digital currencies and electronic payments is important. That’s because they could have an impact on our core central bank functions.

For the past few years, we have researched private and central bank digital currencies. More recently, we’ve been studying other uses of Distributed Ledger Technology (DLT).

With many possible applications of DLT, we need to look at a range of questions. Test cases between authorities and the private sector can help deepen our understanding.

The Bank works with academics and the private sector to build and test this technology.

Managing the benefits and risks of financial technology through a global regulatory framework is essential.

The Bank of Canada contributes to this agenda through the Financial Stability Board, the Committee on Payments and Market Infrastructures, and the Basel Committee on Banking Supervision.