(Ottawa) If the Bank of Canada ended up offering digital currency, it would be greener than Bitcoin or other cryptocurrencies, a deputy central bank governor said Wednesday.
Timothy Lane said the Bank of Canada had studied environmental impacts as part of its research to create its own digital offering.
PHOTO DAVID BOILY, PRESS FILES
Bank of Canada Deputy Governor Timothy Lane
Bitcoin mining consumes more energy each year than some countries like the Netherlands, according to the Cambridge Bitcoin Electricity Consumption Index, as computers around the world solve complex mathematical equations to generate the tokens.
Lane argued that energy-intensive processes are an integral part of public confidence in the value of Bitcoin and other cryptocurrencies.
According to him, the central bank would not need to create similar confidence in a potential digital currency, because Canadians already trust the Bank of Canada and the banknotes it prints.
Speaking at a panel organized by the Canadian Chamber of Commerce, Lane added that the bank does not yet see a need for it to offer its own digital currency.