Timothy Lane recklessly used a speech to warn investorsRecent spike in bitcoin prices And other cryptocurrencies, viz
Looks like ula hajnita movement rather than trend.
This is just a popular tweet to let prices explode, Said multi-billionaire Elon Musk referring to messages sent on the social network.
Cryptocurrencies like Bitcoin are unlikely to turn into money in the future. […] Their certification methods are expensive and their purchasing power is very volatile.
Canadian digital currency is more stable, but is it really relevant because of the already massive use of payment methods such as credit and debit cards and Intrac e-transfer? One thing is clear, according to Timothy Lane, she
Does not necessarily impose.
For us, there are no very strong arguments for launching a digital currency, because we already have other payment methods, He said in an interview with Radio-Canada.
But how is this currency?
Furthermore, it is not clear what form this new currency will take or whether it will rely on blockchain technology such as decentralized cryptocurrencies or pass through large banks. One thing is for sure, it has value equivalent to physical currency.
The trouble is, people want to take money from banks in a crisis, Deputy Governor Lane recalled. These bank leaks are further exacerbated by the presence of the Central Bank digital currency.
However, there are some benefits to the horizon, including an idea
Instant solution like notes Yet
Respect for private life. Digital currency is accessible to anyone, from the homeless to people from remote communities.
Economist Pascal Bedard believes that this virtual currency must exist
Compete with our current system, which means it adds value compared to the way it currently works.
If not, why not?
While the idea is accelerating, it will take years for the Bank of Canada digital currency to emerge and require legislative changes in addition to significant public debate.
Mr. Baird pointed out that the Bank of Canada however
It is ahead of other central banks in the world in thinking about this issue.
This is the main reason why it is so slow, the alternative we have right now is really very effective.
All cryptocurrencies may fall tomorrow morning and apparently, global markets will not experience this. That is why central banks do not worry much about this.
Other upcoming changes to modernize the system
From 2022, a new payment system will emerge in Canada, which will allow transactions to be handled much faster. Timothy Lane gave some examples of this discovery:
For example, we can capture scenes where companies can pay their part-time employees at the end of their shift, and people buy their first property with a single click-down payment, without having to file a bank draft at their lawyer’s office.
Mr. Lane lamented in his speech that sending money abroad
Too slow and expensive for individuals and businesses, disrupting people’s lives and livelihoods.
I think it was a long-term risk, he added in an interview. If banks are not efficient enough to move money across borders, others will find ways to move money cheaper and more transparently.
Many technology companies, such as Transfer Wise, have already emerged to compete. Traditional financial institutions are committed to receiving or losing land.