Canada’s big banks are exploring the development of Canadian dollar-based digital money, starting with a tokenized deposits initiative. Tokenized deposits are traditional bank deposits represented on a digital ledger or blockchain. They could allow for faster, more efficient and programmable payments to Canadian customers while largely maintaining the existing banking structure. Canadian-dollar deposits could be represented as tokens on a digital ledger. Unlike many stablecoins, these tokens would remain bank deposits and would represent a claim directly against the issuing bank. There is also discussion and experimentation around banks using shared or interoperable ledger infrastructure, which could allow transactions between financial institutions to settle almost instantaneously. The tokens would be issued by the banks and, from a legal perspective, would continue to be treated as traditional bank deposits.
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12 Comments
CoderDonna @coderdonna · 8d
Ugh, all I can think of is tech mages taking your balance to zero and you have no recourse. The mattress is looking better all the time.
ETF Go
@etf.go · 7d
The back offices of Banks/Financial institutions are bloated and archaic. I can see tokenization/blockchains absolutely simplifying and streamlining the current systems. It will take time but undoubtedly will allow the banks to streamline and cut costs leading to more longterm profits. 👍
Bill Johnston
@billjohnston · 8d
Cool! Let's give 'er a rip and see how it works out. The Canadian banking system is known for having safeguards in place so this should work out OK, IMO. 👍
Clantosa
@clantosa · 7d
What's currently broken for everyone to be forcing crypto and block chain things so aggressively? Or what future problem are they envisioning that requires this change?
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