The Bank of Canada has shelved plans for a central bank digital currency (CBDC). The Bank of Canada first launched a research project in 2019 to explore the creation of a digital Canadian dollar, with a public consultation in 2022. In a research paper in early 2024, the central bank argued that the introduction of a CBDC could help Canadians maintain monetary sovereignty and financial stability as cash usage continues to decline across the country. Another paper also found that if implemented, a new CBDC could reduce bank deposits in the country by up to 12 per cent. However, the central bank said it will continue to conduct policy research and analysis on payments developments in Canada and abroad.