MintChip 2.0? Bank of Canada official hints at government backed digital currency

Hopes of a government-backed digital currency in Canada may have been rekindled following a speech by Carolyn Wilkins, Bank of Canada's senior deputy governor, at Wilfrid Laurier University in Waterloo, Ontario.

According to a CBC News report, she said the Bank is looking into issuing its own digital currency, "like Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term".

With regards to today's Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term such as Bitcoin and altcoins, Wilkins illustrated what would happen should their use become more common than fiat:

"In the very unlikely situation in which cryptocurrencies were used broadly, a significant proportion of economic transactions would not be denominated in Canadian dollars. This would reduce the bank's ability to influence macroeconomic activity through Canadian interest rates."

However, she added, "we are nowhere near this point today."

Is this MintChip 2.0?

MintChip is a project by the Royal Canadian Mint, with partners from the private sector, aiming to create a digital p2p version of the Canadian dollar. Earlier this year, the Mint said it plans on divesting from the project.

Intuitively, whatever work that has been invested into the MintChip project should be put to good use. One would assume that a new undertaking, should it materialize, should revive the old MintChip project or at least recycle its useful components.

At first glance, this is not the case. There was apparently no mention of MintChip. Also, the indication was that this would be a Bank of Canada initiative, not one from the private sector as was reportedly slated for MintChip.

One can also speculate that there was insufficient interest from the private sector, or the Department of Finance found such a project more appropriate to keep public. Therefore, the government would be looking to start from scratch.

In June, a Royal Canadian Mint spokesman told DC Magnates: "The Mint is currently working with the Department of Finance to explore divestiture options. We are also in the process of completing development of MintChip to package the assets for divestiture." The spokesman declined to provide details on who in the private sector is interested or any timelines for divestiture.