Bank of Canada Governor: Bitcoin “Let me sleep awake at night”

nRunaway commentary: The governor of Canada mentioned in the year-end report three issues that made it impossible to sleep, including cybersecurity, young people’s employment, and household debt. At the same time, special mention of cryptocurrency is another issue that worries you. He believes that the encrypted currency is not a currency, the purchase behavior is purely speculative, and its value is unknown. And the money provided by the central bank is the best safe haven. Of course, the demand for digital currencies will continue to increase, so it is necessary for the central bank to study in depth how this new thing can be used correctly.n
nTranslation: Annie_Xun
Fed Chairman Janet Yellen may not think that cryptocurrency can make a big difference in the economy, but the Bank of Canada governor said Bitcoin speculation kept him awake at night.n
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Bitcoin “let me sleep awake at night”n
End of the speech “Three Things Keeping Me Awake at Night,” Bank of Canada Governor Stephen Poloz told the Toronto Canadiens Club (Canadian Club of Toronto) on-site participants, the New Year, his three major concerns Is a cyber threat, housing costs caused by rising family debt, employment difficulties for young Canadians.n
Before concluding his speech, however, Poloz admitted that there was something else that made him sleepless. “I keep hearing about the cryptocurrency, especially bitcoin.”n
Poloz expressed dissatisfaction with Bitcoin during the Festivus festivals, beginning with the “misname” of cryptocurrencies.n
n”From the basics, the term ‘cryptocurrency’ is a misnomer: ‘cryptography’ is correct, but ‘money’ is wrong.A thing that is seen as money must be a reliable store of value and you must be able to Easy to spend it. These tools do not have any of these features, so they do not constitute a ‘currency’.n
nHe said cryptocurrencies are more structured like high-risk securities, though buying them is more like gambling than investing.n
n”So, what exactly is cryptocurrency? The characteristics are very different, but generally speaking, they are all considered as securities.” “Perhaps their true value may not be guessed, and perhaps the most certain thing people may be sure is that buying these equates to the risk of buying closer to gambling than to investing.”n
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Canadian banks research digital currencyn
Finally, Poloz expresses some confusion over the desire to leave the central banking system, which provides “absolutely important public interest” to consumers.n
He said:n
n”Remember, the cash provided by the central bank is the only truly risk-free payment method,” while ignoring the notable threat of counterfeit currency and hyperinflation in some countries.n
nHowever, Poloz acknowledges that as the world goes deeper into the digital age, the demand for “digital cash” will continue to rise, giving “strong arguments” that central banks (including banks in Canada) must study how digital currency can be properly used in traditional financial systems to meet these demand expectations “.n
“All central banks are researching this issue.”n

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