Cryptocurrency
Bank of Canada Halts Digital Dollar Project Amid Global Surge in CBDC Development
Canada has reportedly paused its Central Bank Digital Currency (CBDC) project, which started in 2017.
According to a September 18 CBC news story, following years of research into the potential for a digital version of the Canadian dollar, the local central bank has decided to move away from the initiative.
Bank of Canada Rethinks Digital Currency Plan
The CBDC project was started in response to rapid digitalization and changing payment habits among Canadians. In 2022, the country’s central bank also held a public consultation to gather opinions on the potential of virtual currency.
However, a subsequent report released by the institution in November 2023 highlighted that while Canadians were familiar with CBDCs, they “struggled” to understand the rationale for a virtual version of the country’s fiat currency.
In a later online survey, nearly 87% of participants said they would never use a digital Canadian dollar. A further 92% stated that under no circumstances would they ever prefer CBDCs over existing means of payment.
Cybersecurity threats and privacy issues were also raised. 87% voiced concerns over the Bank of Canada’s ability to protect digital currency users against cyber attacks.
The fiscal regulator has always insisted that the digital Canadian dollar would not replace paper notes, but it was meant to simplify online purchases and the transfer of funds.
Now, it seems even less committed to the idea, reportedly pivoting its attention to policy research and analysis to find ways to adapt to the changing local and global payments landscape.
Global CBDC Momentum Continues to Grow
The reported shift in priorities comes even as the world is seeing increased interest in CBDCs. Three countries—the Bahamas, Jamaica, and Nigeria—have fully launched such products and are now working to expand their use.
Additionally, data from the Atlantic Council’s CBDC tracker shows that as of September 2024, 134 countries and currency unions—representing 98% of global GDP—are exploring central bank-issued digital currencies.
Industry watchers say that such projects have increased as a result of geopolitical events like Russia’s invasion of Ukraine. There are now 13 cross-border initiatives in progress, including Project mBridge, which links banks in China, Thailand, and other nations.
China’s digital yuan pilot remains the largest globally, with transactions reportedly totaling 7 trillion yuan (approximately $986 billion) as of June 2024. That number is nearly quadruple last year’s total.
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XRP seems to have found support around 50 cents. Can buyers push the price higher this week?
Key Support levels: $0.50
Key Resistance levels: $0.54, $0.68
1. Price Finds Support
After a sharp fall last week, bulls appear to be back. XRP opened this Monday in green and is keen to return on an uptrend. As long as the key support at 50 cents holds, buyers have a good chance to return on the offensive.
2. Sellers are Retreating
Early October saw a spike in sell volume, but now sentiment across the market is improving, which could see the momentum shift back into the bulls’ favor. If so, buyers can aim to take XRP back above 60 cents. However, once there, sellers could return, as in late September.
3. MACD Momentum Shifting
After a difficult start this month, the momentum on the daily MACD is showing the first signs of a reversal, with a histogram making higher lows. If this trend continues, buyers could soon take over the price action and push XRP to break higher again.
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The price of Bitget’s BGB token unexpectedly dropped by 50% on the morning of October 7 before beginning to recover.
The platform has announced that it will compensate users for any losses resulting from the sudden volatility, which is still under investigation.
Exchange Promises Full Compensation
According to CoinGecko data, the incident saw the token’s value fall from $1.14 to $0.64 before staging a quick recovery. In a post on X, Bitget addressed the situation, saying, “BGB experienced unexpected volatility today due to market conditions, but the price has quickly stabilized.”
The platform reassured its users, promising to fully compensate for any asset losses. It also announced that a detailed compensation plan would be released within 24 hours, with the entire process set to be completed within 72 hours.
Bitget CEO Gracy Chen reiterated this message in a separate X post:
“The incident is still under investigation, but I want to assure everyone affected that we will not let any Bitget users suffer losses.”
Chen emphasized that Bitget’s overall standing remains strong, noting that the platform achieved a global market share of 11% in the third quarter of 2024, making it the fourth-largest exchange globally. Additionally, it boasts an asset reserve exceeding 176% and holds the second-largest protection fund globally, which is designed to compensate users quickly in the event of such incidents.
The Nature of Flash Crashes
Meanwhile, this incident mirrors a past development that occurred earlier this year with OKB, the native cryptocurrency of the OKX exchange. The token faced sudden price collapses, falling from a high of $48 to $25 within hours. The event was reportedly triggered by several large leveraged position liquidations, leading to further sell-offs and price declines.
At the time, OKX responded by reassuring its users that it would compensate them for the losses incurred from the unusual liquidation. While OKB’s crashes were linked to market-wide volatility, Bitget has yet to pinpoint the exact cause behind today’s event.
A cryptocurrency “flash crash” occurs when several holders rapidly sell a specific crypto asset, surpassing buyer demand and causing the price to drop sharply in a short amount of time. Unlike a typical collapse, the price usually recovers quickly, often returning to a level close to where it started.
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[PRESS RELEASE – Dubai, UAE, October 7th, 2024]
On October 22-23, the Blockchain Life 2024 forum will take place in Dubai. Over 10,000 participants from 120 countries will come together for the crypto event to share industry insights on the eve of Bull Run 2025.
Participants will hear from leading voices in the blockchain space, who will share market analysis on market trends and potential future developments.
Confirmed figures include:
- CEO Tether – Paolo Ardoino
- Co-Founder Animoca Brands – Yat Siu
- CEO Ledger – Pascal Gauthier
- CEO Cardano Foundation – Frederik Gregaard
- CEO Dubai Blockchain Center – Dr. Marwan Alzarouni
- Co-Founder Litecoin Foundation – Xinxi Wang
- CEO Vechain – Sunny Lu
- CEO of dYdX Foundation – Charles d’Haussy
- Founder Listing.Help, Jets Capital – Sergei Khitrov
- Founder DWF Labs – Andrei Grachev
- Co-Founder Tezos – Arthur Breitman
- CEO Trust Wallet – Eowyn Chen
- Co-Founder Osmosis Labs – Sunny Aggarwal
- Co-Founder of Sui (Mysten Labs) – Kostas Chalkias
- Head of Investments at Maelstrom Fund – Akshat Vaidya
- Founder Notcoin – Sasha Plotvinov
- Co-Founder, CEO Celestia Labs – Mustafa Al-Bassam
- Google Cloud – Tiago Henriques
- Program Lead MetaMask – Zied Brini
In addition to the lineup of speakers, Blockchain Life 2024 is also set to include behind-the-scenes discussions that will provide an opportunity for networking and exchanging information on the latest advancements in the sector.
The forum is coming soon. Readers can purchase tickets with a 10% discount using promo code chainwire.
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