The Bank of Canada has explored the technical feasibility of a digital Canadian dollar through a research paper that outlines a system design for a retail central bank digital currency (CBDC). The proposed OpenCBDC 2PC system emphasizes privacy, speed, and decentralization, enabling users to transact without revealing their identities. The design allows personal identity to be separated from transaction data, aiming to provide privacy superior to current electronic payment systems. However, challenges include integrating the new architecture with existing payment infrastructures and addressing performance during audits. While the paper does not commit to developing a CBDC, it provides a foundation that balances user privacy with institutional control, particularly relevant as Canada navigates potential adoption under Prime Minister Mark Carney, who supports CBDCs.

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