The Bank of Canada is holding public consultations on the features that could be included in a future digital currency.
The central bank calls the consultations, which run until June 19 of this year, exploratory in nature. No firm decision has been made on whether Canada will create a digital version of its dollar.
Central banks around the world are undertaking similar studies as the use of cash continues to decline in developed economies.
Several central bank officials have expressed concern about leaving the development of digital currencies up to companies in the private sector.
China has been a leader among countries that are developing central bank digital currencies (CBDC), although adoption is still in its early stages in the nation of 1.4 billion people.
The central banks of England, Japan, Brazil, and Australia are also investigating the feasibility of launching a digital currency.
The Bank of Canada has said that a digital Canadian dollar is not currently needed, and any decision to issue one would have to be made by Canada's parliament and federal government.
In a statement, Canada’s central bank said: “If a digital Canadian dollar is issued in the future, the Bank will continue to provide bank notes for those who want them.”
