The deputy governor of the Bank of Canada (BoC), Timothy Lane, recently said that central banks need to hasten the creation of their own digital currencies. According to Lane, digital currencies should be ready as an alternative to Facebook’s Libra token.
Speaking at an online panel discussion, the deputy governor also said that the development of digital currencies could serve as a way to limit the spread of the persisting coronavirus.
During the online discussion conducted by the Central Bank Payments Conference, Lane revealed that the BoC has been working on producing a Central Bank Digital Currency (CBDC). Specifically, Lane said the digital currency research has been productive and at a “good pace.”
Furthermore, the deputy governor stated the benefits Facebook’s token will when it launches. Notably, Lane said Libra would help cross-border payments.
However, Lane highlighted a significant challenge with the Libra. As by InsideBitcoins, Lane poses the question of whether Libra or the central bank should develop cross-border payment technology.
Interestingly, the deputy governor’s recent declaration is a contradiction to his earlier statements regarding the creation of a CBDC. Before the pandemic began, Lane said there was no convincing reason to support the development of a CDBC.