The Bank of Canada believes that no threats to the state's economy come from cryptocurrency. The position of the regulator was announced by its official representative Paul Baudry.
The share of crypto payments is so low that their impact on the financial sector is hardly felt. However, the official acknowledged that if the volume of investment Canadians in digital assets continues to grow, then the authorities will be forced to respond so as not to threaten the banking sector.
The Central Bank is closely monitoring the development of the crypto market and, in parallel, is developing a plan to increase its transparency and regulation. Baudry views Bitcoin as a speculative instrument. It is not provided with anything, and people take high risks when acquiring it.
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However, there are digital assets backed by fiat money. We are talking about stablecoins, which deserve more trust and can be considered as reliable means of payment, said the representative of the Central Bank.
As a reminder, at the beginning of 2021, three bitcoin ETFs were approved in Canada. Institutional investors were able to invest in cryptocurrency without the need to physically purchase it.