Canada will release a digital dollar

The country's central bank announced the release of a digital currency.

Are you ready to give up cash and bank cards? Canadians will soon be able to do this. This week, the Central Bank of Canada announced that it plans to issue a digital Canadian dollar. It will be the full equivalent of paper dollars and money on your card: it will retain the same value and purchasing power, and it will also be possible to pay with it everywhere. It will also be confirmed by the strength of the Canadian economy — this country has long since moved away from the idea of a gold reserve, so the value of the digital dollar will be real, like that of the paper one.

Bankers spied on the idea of cryptocurrencies. They want to make sending digital dollars fast, cheap and easy. This will give residents of the country the opportunity to freely send and receive instant transfers within the country, and also protect their money well.

The main advantage of bitcoin is that it is very difficult to steal, it is better protected than the funds in a bank account or in your pocket. The main problem with is terrible instability, when the currency jumps or collapses by hundreds of dollars due to tweets by Elon Musk or a famous economist. In Canada, they decided to take advantage of the blockchain system and digitize their own currency. Unlike bitcoin, its price will not depend on random circumstances, but will be the equivalent of a regular CAD.

Each cryptocurrency transaction is recorded in a block chain, which is distributed to thousands of computers around the world. Each block contains data about the previous block, and the entire block chain forms an unbreakable chain, which makes it impossible to change data in past blocks without changing the entire block chain. Thanks to this, the blockchain system is extremely reliable and protected from fraud and data forgery.

It is possible to steal such a currency if an attacker gains access to the private key of the owner of the currency wallet, which is used to sign transactions. In this case, the attacker can send money from the owner's account to his own account. Therefore, it is very important to keep the private key in a safe place and not trust it to anyone. There are also technologies for protecting such wallets, which are constantly being improved.

Now that the Canadian banking system wants to adopt the blockchain system, the development of this area will go even faster. The country seeks to use all the advantages of cryptocurrencies, cutting off the cons. The digital dollar will be completely legal, although just as private.

So far, the Central Bank has not come up with a full plan of action, but is ready to get down to business. Programmers and economists are optimistic: they believe that this use of innovation will help the Canadian economy become advanced and even overtake the United States.

Department officials also said that they do not plan to make the digital CAD the only currency in the country. Supporters of cash and bank cards will still be able to use them if they are comfortable.