In Canada, one of the first countries to approve a Bitcoin ETF, central bank vice president Paul Beaudry also spoke about cryptocurrencies at the Ontario Securities Commission 2021 Event.
Paul Beaudry said that the leading cryptocurrency Bitcoin and other cryptocurrencies currently do not pose a risk to the Canadian financial system.
Stating that the central bank has not considered cryptocurrencies to be risky assets until now, the vice president cited the reason for this as the fact that cryptocurrencies are quite far from the current financial system.
While expressing his thoughts on crypto assets, Beaudry underlined that as the number of crypto investors increases, the market becomes risky.
“Today, we do not think that digital assets pose a great risk to the economy yet, but we are closely following the development of this sector.”
Stating that Bitcoin and other cryptocurrencies are speculative assets with a volatile nature and therefore cannot be used as a means of payment, Beaudry said that Canada does not consider accepting Bitcoin or any other crypto currency as a means of payment, like El Salvador.
Speaking about stablecoins, Beaudry stated that stablecoins can be used as a potential payment tool because they are backed by fiat currencies, “This is an issue that we also dwell on.” said.
*Not investment advice.