TORONTO, Canada, Thursday July 11, 2019 – The Bank of Canada (BoC) should consider issuing a digital currency for the economy and the people of Canada, the Centre for Policy Alternatives (CPA) and the C.D. Howe Institute (CDA) argue in a report released this week.
The authors of the report, Michael Ignatieff, a former Liberal MP and the C.D. Howe Institute’s Macdonald-Laurier Institute, and Andrew Sharpe, the interim chief executive officer of the C.D. Howe Institute, argue that this digitized virtual currency would boost consumer choice, encourage innovation and help to mitigate the risks associated with extreme technological disruption.
The report, published last Friday, notes that “digital currency is part of a package of reforms to the economy that can be implemented in the near term to support Canada’s competitive position within North America.”
These reforms include improvements to the nation’s bankruptcy law to make it more flexible, reduce red tape and cut government red tape that currently kills Canadian companies before they ever get off the ground, as well as tax reforms to reduce the burden on firms in a range of sectors, from small and medium-sized businesses to large corporations.
“There are many reasons for the current economic environment: exports have fallen faster than import volumes and businesses are struggling to compete in an increasingly globalized marketplace,” the authors wrote. “At a time when innovation is growing in importance, Ottawa needs to be thinking about the ecosystem of small- and medium-sized businesses that form the backbone of Canadian commerce. It is crucial that Ottawa take steps to ensure the public is actively and productively involved in the economy. The benefits of a modern digital currency would extend beyond that and would result in increased competition among firms and between firms.”
The report has the potential to help the Canadian government, but it would also transform digital currencies into a global trend.
“By reaching out to more than 300,000 individuals on our platform across Canada, we have been able to find a range of solutions that a simple design can offer to people across the country,” says Claire Bateau, CEO of Canada.coin, a provider of digital currency, tokens and technology. “Canada can take the lead in digital currency as more governments increase their engagement and share their findings, lessons learned and vision. It’s great to see Canada showing how big digital currencies can grow and prosper in a country in good fiscal shape.”
Click here to read the full report.
About the CDA
The Centre for Policy Alternatives (CPA) is a national, independent, non-partisan public policy research organization and a registered charity. Based in Toronto, Ontario, CPA works to promote and enhance the well-being of Canadians, and the country as a whole, through public policy research and policy recommendations. CPA is a recipient of the Canadian Union of Public Employees Persons of Distinction Award and the Rupert Mowat Awards for Excellence in Economics and Public Policy, to name a few. The CPA was founded in 1998 with the mission to provide citizens with independent and diverse ideas and insight on major public policy issues affecting us all. Visit www.cda.ca for more information.
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