Canada’s central bank, the Bank of Canada, recently put out a report on the risks and benefits of a central bank digital currency.
“An anonymous token-based central bank digital currency (CBDC) would pose particular security risks,” the Bank of Canada wrote in its Oct. 5 report. “These risks arise from how balances are aggregated and stored, how CBDC is used for transactions, and how various solutions such as e-wallets, crypto exchanges and banks compete to attract users.”
Over the past year or so, discussions have picked up and various governments have begin digitizing their currencies in the form of a CBDC. China has made a number of headlines for its digital yuan CBDC.
The Bank of Canada’s report listed risks in multiple areas, including asset storage. In the digital asset world, token holders can make a huge number of wallets, spreading their funds in different allotments…