The Bank of Canada’s research paper outlines a retail CBDC system emphasizing high privacy and transaction speed. The design uses cryptographic techniques to balance transaction anonymity with regulatory compliance needs, avoiding full financial surveillance.
Proposed technical architecture enables offline transactions and hardware-based key storage for security. The CBDC would integrate with existing payment rails while allowing programmable features for automated settlements and conditional payments.
This approach contrasts with China’s digital yuan by prioritizing user privacy. The paper signals Canada’s proactive stance on sovereign digital currencies, though implementation remains contingent on parliamentary approval and further feasibility studies.
