Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The Deputy Governor of the Bank of Canada (BoC), Tim Lane, said on Wednesday that cryptocurrencies such as Bitcoin are a flawed payment method, Bloomberg reported.
Lane also pointed to the costly verification methods and the digital currencies’ unstable purchasing power.
“Our view remains unchanged, a digital currency is by no means a foregone conclusion. That said, the world has been changing even faster than we expected.”
Commenting on the recent surges in cryptocurrencies, the BoC deputy governor said that it has resulted from speculative mania.
“The recent spike in their prices looks less like a trend and more like a speculative mania, an atmosphere in which one high-profile tweet is enough to trigger a sudden jump in price.”
The remark clearly points to recent surges in Bitcoin and Dogecoin following tweets from famous billionaire and businessman Elon Musk.
Bitcoin soared earlier this week after Musk’s Tesla decided to invest $1.5 billion in the world’s largest cryptocurrency in terms of market cap.
“Only a central bank can guarantee complete safety and universal access, and with public interest , not profits, as the top priority.”
“We will issue such a currency only if and when the time is right,” Lane said, referring to the possibility of the Bank of Canada issuing a digital currency in the near future.
