‘Digital loonie’ reaches 4 million wallets — Bank of Canada hints at cash phase‑out by 2028

OTTAWA / TORONTO — More than four million Canadians have already loaded the central bank digital currency (CBDC) app, officials revealed Monday, as the "digital loonie" rapidly moves from pilot project to everyday reality. The ramp‑up marks the fastest adoption of a new payment method since interac e‑transfer.

Bank of Canada deputy governor Rhys Mendes confirmed that a discussion about gradually reducing physical banknote circulation will begin later this year. “We are not abolishing cash tomorrow, but by 2028 the role of physical currency will be very different,” Mendes told a fintech conference in Vancouver. The news sparked debate among consumer advocates worried about financial exclusion.

According to a report by the C.D. Howe Institute, the digital currency could save the economy up to $1.2 billion annually by reducing cash handling and fraud. Small businesses in rural areas — where access to banking is limited — have been among the most enthusiastic adopters. “It’s instant, no fees, and I don’t need to drive an hour to deposit cash,” said Mira Patel, who runs a general store in Kenora, Ontario.

However, the plan faces political pushback. Conservative MP and finance critic Jasraj Singh Hallan called for “a full parliamentary inquiry,” arguing that a digital dollar could infringe on privacy. “The government doesn’t need to know every coffee you buy,” he said. In response, the Bank of Canada stressed that the CBDC is designed with “privacy by design” — the Bank would not see individual transaction data.

Meanwhile, financial technology firms are rushing to integrate the digital loonie into their apps. Shopify announced that by summer 2026, all Canadian merchants using its platform will be able to accept the CBDC with zero transaction fees. RBC and TD have also launched pilot interfaces within their mobile apps.

With the rapid uptake, some economists are raising their GDP forecasts for 2026, citing increased consumption efficiency. “If digital loonie usage hits 10 million by year end, we could see a 0.3% bump in productivity,” said economist Armine Yalnizyan. The government is also exploring the possibility of delivering some benefit payments directly into digital wallets, potentially saving millions in administrative costs.

fictional scenario for canadanowstoday.com — 2026 economic article. all quotes and figures imagined.