The accounting of the asset itself could take the form of debiting and crediting account balances or tracking of specific “tokens.” Another key design consideration is the method for authenticating the asset owner—to open an account and to make transactions. Traditionally, identity authentication is done by the account provider, but new tools, such as biometrics, may be required for decentralized systems.
While the Bank of Canada’s liquidity operations are focused on short-term financing, the Government of Canada has introduced measures aimed at supporting long-term financing for businesses and consumers. Let me highlight two.