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Thursday, August 18, 2022

There is no way for crypto to ‘get out of inflation’: Bank of Canada – Decrypt

Top Bank of Canada officials slammed the claim that bitcoin or any other cryptocurrency for that matter could replace the Canadian dollar in the face of rising inflation in the country, according to one global news report good.

During testimony before the Finance Committee of the House of Commons on Monday, Liberal MP Yvan Baker asked Bank Governor Tiff McCalem and Senior Deputy Governor Carolyn Rogers whether the use of crypto could represent an effective strategy against inflation.

“I think if Canadians are looking for a stable source of payment and a stable source of value, then cryptocurrency doesn’t really meet that test,” Rogers responded. “We don’t see cryptocurrency as a way for Canadians to get out of inflation or a stable source of value.”

Canada’s inflation rate hit a 31-year high of 6.7% in March, with Statistics Canada reporting that tracks all eight categories of the country’s economy – from food and energy to shelter costs and transportation – are rising. Were.

Conservative Party leadership candidate Pierre Poiliver has previously said that he wants to see Canada as the “blockchain capital of the world” and “give back control of their money to the people,” which requires cryptocurrencies to be legal. Will be

Last month, Poilievre also posted a video Buying himself a shawarma using bitcoin’s Lightning network at a restaurant in London, Ontario, emphasizing the importance of new technologies and support for local businesses.

However, according to a Reuters Despite the report, “promising gains from innovation in the financial sector”, Macklem said that “we certainly expect the Canadian dollar to remain at the center of the Canadian financial system.”

Bank of Canada’s CBDC Research

The Bank of Canada is currently working on its central bank digital currency (CBDC), with the Massachusetts Institute of Technology (MIT) joining the regulator’s research efforts last month.

A CBDC is a digital form of a country’s fiat currency. Unlike decentralized cryptocurrencies, they are usually controlled by central bankers and the federal government, so it is not surprising that many politicians have argued that CBDCs would be a better option for payments than crypto.

However, whether the central bank adopts its own digital currency is for Parliament to decide.

“There are some significant innovations out there and I think the legislative review will allow us to explore those innovations, but also look at ways that we can reap those benefits in a more regulated environment,” Rogers said

World Nation News Desk
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