C.D. Howe says BoC should have digital coin

OTTAWA The C.D. Howe Institute thinks the Bank of Canada should issue a digital currency that can be converted into cash.

In a new report, the think tank says Canadian-dollar-linked stablecoins could become attractive if they are convertible into cash issued by the Bank of Canada and are well designed and well regulated.

A stablecoin is a cryptocurrency that is linked to an underlying asset such as a fiat currency.

It believes a Bank of Canada digital currency should be issued in token form, with decentralized technology for settling transactions.