Protect Cash Access, Ban Digital Dollar

Summary#

This bill would create a federal framework to keep cash available and usable across Canada. It directs the Minister of Finance to review laws and policies, set out measures that protect access to cash, and report to Parliament. It also amends existing laws to remove the federal power to “call in” coins and notes and prohibits the Bank of Canada from issuing a digital dollar.

• Requires a comprehensive review within 90 days of coming into force (Comprehensive Review).
• Requires a framework with measures on access points, business acceptance, donations, and cash infrastructure (Framework Contents s.4(2)(a)-(e)).
• Mandates a public report within 18 months and a follow-up review within 3 years (Reports to Parliament).
• Repeals the Governor in Council’s power to call in coins and notes (Related Amendments; Currency Act s.9(1) repealed).
• Bars the Bank of Canada from issuing a central bank digital currency (CBDC) in a “digital form of the dollar” (Bank of Canada Act s.23(2)).

What it means for you#

• Households

  • Access to cash: The Minister must ensure infrastructure for cash withdrawals and deposits across Canada and set a “reasonable distance” standard people should travel for cash services (Framework Contents s.4(2)(a)). Timing: standards defined in the framework, with a report due within 18 months of the Act coming into force (Reports to Parliament).
  • Ability to pay in cash: The framework must protect the ability to keep using cash even as digital options grow (Framework Contents s.4(2)(b)). This does not itself force businesses to accept cash; it focuses on measures and incentives.
  • Digital dollar: The Bank of Canada would be prohibited from issuing a digital Canadian dollar unless Parliament later changes the law (Bank of Canada Act s.23(2)). Consumers would not get a Bank of Canada digital wallet option under this bill.

• Seniors, Indigenous Peoples, newcomers, and low‑income persons

  • Maintained cash access and use: The framework targets groups that rely more on cash, as noted in the bill’s preamble, by keeping access points and acceptance options available (Preamble; Framework Contents s.4(2)(a)-(c)). Timing: within the 18‑month reporting window for initial measures.

• Non‑profits and community organizations

  • Cash donations: The framework must remove barriers and disincentives to cash donations while not weakening anti‑money laundering and fraud controls (Framework Contents s.4(2)(d)).

• Businesses and creditors (e.g., lenders, billers)

  • Incentives to accept cash: The framework must include measures to incentivize acceptance of cash payments (Framework Contents s.4(2)(c)). Specific tools are not defined in the bill; details would come in the Minister’s framework and report.
  • No immediate mandate: The bill does not require cash acceptance by law; it directs the Minister to design incentives.

• Financial institutions, ATM operators, cash services

  • Infrastructure expectations: The framework must support the long‑term viability, resilience, and sustainability of cash sorting, storage, distribution, and access points (Framework Contents s.4(2)(a), (e)).
  • Distance standards: Institutions may be affected by any “reasonable distance” benchmarks for deposits/withdrawals set by the framework (Framework Contents s.4(2)(a)).

• Everyone holding cash or old notes

  • “Call‑in” power removed: The bill removes the Governor in Council’s power to call in coins and notes (Related Amendments; Summary). This lowers the risk that government could order certain notes or coins to be returned by a deadline.

• Transparency and timelines

  • Report to Parliament: Framework and recommendations must be tabled within 18 months and posted online within 10 days (Reports to Parliament).
  • 3‑year review: The Minister must review implementation, effectiveness, and social/economic impacts within 3 years after the first report is tabled (Reports to Parliament).

Expenses#

Estimated net cost: Data unavailable.

• Fiscal note: Data unavailable.
• Direct appropriations in the bill: None stated (Bill text).
• Potential administrative costs: The Department of Finance must conduct a review, develop a framework, and prepare reports; amounts not specified (Comprehensive Review; Reports to Parliament).
• Potential future costs or savings from incentives, infrastructure, or enforcement would depend on measures chosen in the framework; not specified in the bill (Framework Contents s.4(2)(a)-(e)).

Proponents' View#

• Protects inclusion and access for cash‑reliant groups by requiring nationwide access points and a “reasonable distance” standard, reducing travel burdens, especially in rural and remote areas (Framework Contents s.4(2)(a); Preamble).
• Preserves the option to pay in cash and supports privacy by keeping cash usable alongside digital methods (Framework Contents s.4(2)(b); Preamble).
• Supports charities and community groups by removing barriers to cash donations while maintaining anti‑money‑laundering and fraud controls (Framework Contents s.4(2)(d)).
• Enhances resilience during outages or cyber incidents by maintaining cash infrastructure for sorting, storage, and distribution (Framework Contents s.4(2)(e)).
• Ensures democratic oversight of any digital dollar by prohibiting CBDC issuance unless Parliament later changes the law (Bank of Canada Act s.23(2)).
• Reduces uncertainty for holders of cash by removing the Governor in Council’s power to call in coins and notes (Related Amendments; Summary).

Opponents' View#

• Uncertain fiscal impact: The bill mandates a framework and likely ongoing administration but provides no cost estimates or funding; incentives for acceptance or infrastructure could require public spending (Bill text; Framework Contents s.4(2)(a)-(c), (e)).
• Risk of market distortion: Incentives for business cash acceptance could shift costs onto taxpayers or non‑users if subsidies are used; details are unspecified (Framework Contents s.4(2)(c)).
• Anti‑money‑laundering concerns: Encouraging cash use could complicate AML enforcement, even with the bill’s caveat not to compromise crime‑prevention efforts; effectiveness depends on how measures are designed (Framework Contents s.4(2)(d)).
• Limits on innovation: A legal ban on a digital dollar may slow payments modernization and restrict future options for lower‑cost, interoperable payments unless the law is later amended (Bank of Canada Act s.23(2)).
• Implementation risk: Setting and meeting “reasonable distance” standards in sparsely populated areas may be costly or hard to enforce without compelling private providers, which the bill does not do (Framework Contents s.4(2)(a)).
• Legal and coordination complexity: Cash acceptance practices are shaped by contracts and provincial rules; federal incentives may have limited reach without provincial and industry cooperation (Framework Contents s.4(2)(c); Reports to Parliament).