The Centre for International Governance Innovation (CIGI) and Bennett Jones LLP were pleased to host their third workshop related to Canada and the digitalization of money, titled “Digitalization of Payments and Currency.” As noted in their first two reports, there is much work to be done, especially as more and more countries modernize their payments systems and advance their efforts around the design and potential implementation of a central bank digital currency (CBDC). Digitalization, driven by innovation and competition, is creating new opportunities worldwide to generate benefits for individuals and businesses and to drive productivity gains in the financial services sector and throughout the economy. At the same time, a digital financial marketplace will require complementarity of roles in the public and private sectors, and a collective effort to design, build, operate and oversee the financial system, to realize the dividends of innovation and to serve the public interest.

The workshop focused on four elements of the financial system: payments, open banking, stablecoins and retail CBDCs. Starting again with lessons from policy innovation, experiments and analysis in other jurisdictions, the workshop asked a number of questions for Canada: To what extent should developments in these areas be seen as complements and necessary to lay the groundwork for a coherent system of digital money? What new risks may arise and what are the necessary safeguards that need to be put in place? Which ones should be prioritized and what trade-offs will be required? What are the consequences for regulators?

This video contains the opening remarks from The Honourable Colin Deacon, Independent Senator, Nova Scotia.