The Bank of Canada is again calling for regulations to govern cryptocurrencies such as Bitcoin.
Carolyn Wilkins, Senior Deputy Governor at the Bank of Canada, told a University of Toronto conference on Thursday that authorities should work to develop a coherent set of globally aligned policies governing cryptocurrencies. Ms. Wilkins said such a strategy will need to cover risks in both cash and derivatives products, as well as the related ecosystems. Bank of Canada Governor Stephen Poloz made similar comments last month about Bitcoin.
On Thursday, Ms. Wilkins referred to cryptocurrencies as “crypto assets” rather than currencies because “they do not perform any of the key functions of money.” Her concern, she said, was with the product and not the underlying digital ledger technology, which Canada’s central bank is itself testing. She cautioned that although activity involving cryptocurrencies might be too small to be systemic, at some point they could have financial stability implications.
Wilkins told the crowd at the University of Toronto that the Bank of Canada’s main concerns with crypto assets centre around investor protection, market integrity and the use of such products in illegal activities.
