Bank of Canada Explores Technological Pathways for Retail CBDC

The Bank of Canada has taken a significant step forward in exploring the technical feasibility of a digital Canadian dollar, proposing a system specifically designed for retail central bank digital currency (CBDC) with a focus on simple, everyday payments. According to reports, the Bank of Canada team examined the OpenCBDC 2PC model, which was developed in collaboration with the MIT Digital Currency Initiative. This model prioritizes privacy, speed, and decentralization, allowing users to hold digital funds directly, much like digital cash.