The Bank of Canada is developing tools to issue a central-bank digital currency, though the bank doesn’t see a “compelling need” for one just yet, deputy governor Timothy Lane said on a virtual panel on Monday at DC Fintech Week. (The Logic)

Talking point: “We’re now actually moving from something that’s more like a research project to something where we’re actually building the capability of issuing a CBDC,” Lane said. “We haven’t made the decision to issue one yet, because we basically don’t see a compelling need under current circumstances to add a CBDC to the array of payment vehicles that are available.” That could change if the use of physical cash continues to decline in Canada, Lane said. The growing popularity of stablecoins could also hinder central banks’ abilities to carry out their mandates unless a CBDC were adopted, he added. The Bank of Canada has been exploring the possibility of a government-issued digital currency for years, and is one of the leaders among global central banks in researching the technology. China, notably, is in advanced stages of development for its CBDC and plans to test it with foreign visitors during the 2022 Winter Olympics.