The Bank of Canada is developing the digital currency version of its Canadian dollar, called the CAD-Coin. The initiative is intended to allow the issuance, transfer and settlement of central bank assets on the distributed ledger. The thought behind this is to build a private pool of cash as a collateral, that would then be converted into the digital currency, allowing an easier exchange of funds while maintaining more data and security over these transactions. It make sense to test the waters on a private blockchain, but it seems that these private networks will need to be able to "speak" with each other down the line in order to maximize the real value of the blockchain.
Advocates have argued that blockchain — which combines the peer-to-peer computing ethos of Silicon Valley with the money management of Wall Street — can free up billions of dollars of costs included in delays and insurance within the financial system. It could even undermine the banks’ role in the market. Sceptics say the technology does not adequately improve existing arrangements. Most use of blockchain technology by the financial services industry has been experimental.