Canadian Big Six Banks Launch Joint Digital Deposit Network Initiative
Canada's six largest banks have joined forces to explore digital money solutions, starting with tokenized deposits. The project aims to bolster the country's payments infrastructure and make it more competitive globally.
The initiative, which includes Royal Bank of Canada, Toronto-Dominion Bank, Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, and National Bank of Canada, will develop digital money based on Canadian dollars. Tokenized deposits are a digital representation of traditional bank deposits that can be recorded and transferred using blockchain technology.
The project comes as the Canadian government seeks to strengthen its domestic economy and reduce its reliance on the US amid trade tensions. The country's bank regulator has stated that tokenized deposits are permissible under existing banking legislation, citing they are 'not legally distinct from traditional deposits.'