A central bank digital currency will not provide any material advantages over existing transaction mechanisms, according to top lenders
The majority of financial institutions recently surveyed by the Bank of Canada are not confident that any potential digital currency can offer positives that existing channels can’t, the central bank said.
Most of the 36 financial institutions consulted by the bank indicated that the digital payment services already in use are more than sufficient to serve Canadians’ needs.
The institutions also said that a central bank digital currency, such as those being piloted by economies like China and India, would not provide any material advantages over existing transaction mechanisms.
“The need for a digital dollar doesn’t exist yet, but we’re getting ready in case one day parliament and the government of Canada ask us to issue one,” the BoC said, as reported by Reuters.
The Chinese prototype digital yuan is currently undergoing testing with 200 million users, while India’s central bank is preparing its own digital mint.
The BoC said that around 130 countries worldwide are exploring the possibilities of digital currency.
Customer satisfaction with Canada's largest banks declines as high interest rates and inflation take a toll, according to a new study by J.D. Power.
— Canadian Mortgage Professional Magazine (@CMPmagazine) October 23, 2023
Read more: https://t.co/7Zh3YXKodz#MortgageIndustry #CustomerSatisfaction #InterestRates #Inflation
AI is faring much better in Canadian finance
Among the tech innovations that are influencing the financial sector, artificial intelligence seems to have made some of the most positive impressions among Canadians.
A recent Royal Bank of Canada (RBC) poll found that as much as 65% of Canadians use AI in expediting bill payments.
AI is being used by Canadians for a wide range of applications, from automated savings and budgeting to real-time insights and cash flow forecasting, RBC said.
“We believe AI is revolutionizing personal finance management,” said Peter Tilton, chief digital officer for personal and commercial banking at RBC.
“The ability to harness the power of AI can help level the playing field in terms of financial literacy for Canadians. It can take the manual calculator work out of budgeting, tell you where you might be overspending, help you save automatically, and even give you a view into your future cashflow.”
The younger generations have especially taken a shine to these tools, with around 71% of respondents aged 18-34 saying that they find AI useful in automating savings. This is despite 75% of Canadians across all demographics expressing scepticism towards AI’s capabilities, RBC said.
