The Central Bank of Canada reiterates the risks of investing in BTC

by in Cryptocurrency News

Canada

The Bank of Canada has had a negative attitude towards Bitcoin and other cryptocurrencies over the past few years.

Back in 2019, the head of the Central Bank Stephen Poloz noted that it is better to use fiat money, not BTC.

A similar statement was published by the Canadian regulator at the end of this week. It states that cryptocurrencies are an extremely risky instrument. People are better off not getting involved with digital assets, even though institutional investors have seen a sharp increase in BTC capital investment lately.

Trending: Smart Contracts Audits Startup Hexens Closed $4.2 M Seed Funding

The Central Bank of Canada emphasized: “Volatility and speculation remain an important obstacle to the wider adoption of cryptocurrencies as a means of payment.”

The real value of a bitcoin or other virtual coin is very difficult to establish. The growth in the value of such instruments is observed only when new coin holders are attracted.

In addition, the Central Bank of Canada believes that cryptocurrencies pose threats to the financial sector of the state, so it is necessary to minimize the number of participants in the crypto market.