OTTAWA -- A senior official at the Bank of Canada says any digital currency the central bank may offer in the future would be more environmentally friendly than Bitcoin and other rivals.
Deputy governor Timothy Lane says the central bank has looked at the environmental impacts as part of its research into creating its own digital offering.
Mining Bitcoin consumes more energy annually than some countries like the Netherlands, according to the Cambridge Bitcoin Electricity Consumption Index, as computers around the world solve complex mathematical equations to unearth one of the finite digital coins.
Lane argues that energy-intensive process is integral to public's trust in the value of Bitcoin and other cryptocurrencies.
He says the central bank wouldn't need to build a similar kind of trust in a possible digital currency because Canadians already trust the Bank of Canada and the bills it prints.
Speaking on a panel hosted by the Canadian Chamber of Commerce, Lane says the bank doesn't yet see a need for it to offer its own digital currency.
This report by The Canadian Press was first published May 26, 2021.
