The Head Economist of Bank of Canada claims that state-backed digital currency (CBDC) may strengthen the flexibility of the state’s monetary policy. CBDC will be beneficial for Canada, as well as for the USA, as its launch will lead to an increase in consumption to 0.64% in Canada and up to 1.6% in the US. Mohammad Daud Hosseini added: “Withdrawal of cash from circulation can promote welfare growth if the motivation for implementing CBDC is to improve the effectiveness of monetary policy”.