The Bank of Canada perceives that the number of Canadians who own cryptocurrencies is growing rapidly. Therefore, the state should accelerate the preparation of rules for the cryptocurrency market. Some officials at the Bank of Canada think so.
Cryptocurrency shocks
Cryptocurrency assets have become an integral part of Canada’s financial system, according to the Bank of Canada. However, this increases the risk of impacts of cryptocurrency shocks not only on the financial system itself, but also on the real economy. “This is an area that is still small, but it is really rapidly growing,” Carolyn Rogers, the vice governor of the Bank of Canada, pointed out in an interview with Reuters.
How to regulate?
“We don’t want to wait with the rules until the market is much bigger,” she added. According to her, it is quite dangerous when people who do not understand it much are invested in an asset whose price fluctuates significantly. And they can’t evaluate all the risks. “Often they don’t even know it’s not a regulated area,” Rogers added. According to her, there is no doubt that cryptocurrencies need regulation, but the challenge will be to find a way to do it. “We’re going to have to figure out whether cryptocurrencies can be included in the current rules at all, or find a way to rank them there,” the Bank of Canada vice governor said further.
