Governor Stephen Poloz of the Bank of Canada in a press note says that it is too early to say Bitcoin is a huge success. The statement has come at a time when Bitcoin continues to expand in the world of finance; many have come to believe that digital currencies are the future of finance. Though many critics agree with what he said, some say that the Bank of Canada is undermining the success of the digital currency.
Despite Bitcoin has been reaching to new heights, particularly, when it touched the benchmark of $1200 in the October last year, the Bank of Canada isn’t too worried about the digital currency. If the statements from the top officials from the bank are taken into consideration, it looks crystal clear that they are far from accepting it a real threat.
In fact, the top official of the banks have testified in front of the Senate banking committee, and admitted that it is too soon to determine if digital currencies like will play a bigger role in the future.
Too Early to Predict Bitcoin’s Success Says Governor Stephen Poloz
Governor Stephen Poloz said that these are early days and so far digital currencies have not made it to what the government calls money. He added that the bank has got no way to go before it needs to be thinking about policy implications. However at the same time he said that banking officials have been tasked with keeping an eye on the new monetary unit.
In similar statement second in command to Poloz, Tiff Macklem, who earlier announced that he will resign from the Bank of Canada to become Dean of University of Toronto’s Rotman School of Management, said that Bitcoin success is speculative. According to him the virtual currency are not in a position to threaten existing money.
In his statement Tiff Macklem said, “I started with the bank in 1984 … and through my entire career at the bank the demise of cash has been much predicted. Cash has been remarkably durable, even with the introduction of credit cards and debit cards and tap-and-go cards.”
He concluded, “If you look at the growth of cash in the economy, it’s grown roughly in line with the growth of nominal income.”
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