Cryptocurrencies like Bitcoin (Bitcoin) Bank of Canada Deputy Governor Paul Beaudry said that at the current level of adoption, it will not pose any major risks to the financial system.
Bodri spoke The risks of stability of the Canadian financial system were discussed at the Ontario Securities Commission Dialogue 2021 on November 23.
When asked whether there are risks in cryptocurrencies, the Deputy Governor of the Bank of Canada responded that so far, the Bank of Canada does not believe that cryptocurrencies are “developing in a way that creates systemic risks for the financial system.” Beaudry points out that this is because cryptocurrencies are “completely separated from the financial system.”
But as the cryptocurrency market becomes larger and more investors, and cryptocurrencies become more and more dangerous, this may mean a certain degree of vulnerability, the official said:
“We haven’t considered this to pose a huge risk to the economy, but we are paying close attention to this.”
Beaudry also emphasized that classic cryptocurrencies like Bitcoin do not play a big role in payments, because investors buy BTC “mainly for speculation.”
But he said that there are also some digital assets, such as stablecoins backed by assets and fiat currencies, which may play a greater role in payments. “This is something we have been paying attention to,” Beaudry added.
Canada has become one of the most crypto-friendly countries in the world. Become one of the earliest jurisdictions in the world Approval of Bitcoin exchange-traded funds.Canada used to be Popular locations for crypto miners worldwide, Ranking fourth According to the Cambridge Bitcoin Power Consumption Index as of August 2021, it is the largest country in terms of hash rate.
However, despite advances in the development and adoption of cryptocurrencies, the Bank of Canada has previously expressed some skepticism about cryptocurrencies. In May, the Bank of Canada stated that digital assets such as Bitcoin is still a high-risk asset Although adopted by institutional investors.
“Price fluctuations caused by speculative demand remain an important obstacle to the widespread acceptance of encrypted assets as a means of payment,” the Bank of Canada wrote in its financial system review, the most important financial risks and economic vulnerabilities.