Canadian Banks Explore Digital Money System
Canada's major banks are exploring the development of a Canadian dollar-based digital money system. The initiative focuses on tokenized deposits, which record traditional bank deposits on a decentralized database or distributed ledger, such as a blockchain.
The tokens would be issued by commercial banks and, from a legal perspective, depositors can treat them similarly to traditional bank deposits.
Big banks like Bank of Montreal, CIBC, National Bank, Royal Bank, Scotiabank, and TD Bank are collaborating on the project. Their first phase aims to move tokenized deposits between Canadian financial institutions.
The goal is to provide faster, more efficient, and programmable payments to customers while maintaining safety, stability, and effective regulatory oversight.