Canada's Big Banks Explore Digital Dollar-Based Money

Canada's big banks are exploring the development of digital money based on the Canadian dollar. The project, which is still in its early stages, involves tokenized deposits.

The tokenized deposits will be issued by commercial banks and can be treated as traditional bank deposits from a legal perspective.

The banks involved include Bank of Montreal, CIBC, National Bank, Royal Bank, Scotiabank, and TD Bank. They are taking a collaborative approach to the project.

The first phase of the project aims to move tokenized deposits between Canadian financial institutions using a decentralized database or distributed ledger, such as a blockchain.