On February 11, 2021, the Bank of Canada (BoC) published three proposals for potential system designs and models for a Canadian Central Bank-issued Digital Currency (CBDC). While the BoC has no plans to launch a CDBC, it is building a contingency plan to prepare for the scenario that it will require the capability to issue a cash-like central bank digital currency to the public.

Among the submissions published is a joint proposal by the University of Toronto and York University for a retail Central Bank-issued Digital Loonie (CBDL) and covers, among others:

• The objectives, mandates, and requirements that the BoC has made public; including supporting Payments Canada’s Payment Modernization program to improve the speed, reliability, accessibility and end-user experience of Canada’s payment systems

• The main features of the CBDL

• Details about its underlying technological architecture

• How the proposed system will comply with onboarding, privacy and anti-money-laundering requirements (e.g. eligible Canadian residents and businesses will obtain their wallets addresses after under-going a third-party e-KYC process)

• The legal framework that enables the proposed CBDL design

For more information on the proposals : https://www.bankofcanada.ca/2021/02/canadian-universities-propose-designs-central-bank-digital-currency/