(Stockhouse File Photo)
The No. 2 at the
Bank of Canada is calling for governing bodies to work toward a coherent set of globally-aligned policies governing cryptocurrencies.
Carolyn Wilkins, senior deputy governor with the BoC, told a recent
University of Toronto conference that such a strategy will need to cover risks in both cash and derivatives products, as well as the related ecosystems.
Wilkins referred to cryptocurrencies as “crypto assets,” rather than currencies because “they do not perform any of the key functions of money.”
She told an audience at the
Rotman School of Management that:
“While activity might be too small right now to be systemic, at some point they could have implications for financial stability….The crypto world is moving fast, and is largely unchecked.”
In a speech that was largely focused on lessons learned from the
2007-2008 global financial crisis, Wilkins said that risk raises concerns about investor protection, market integrity, and the use of crypto assets in illegal activities.
During a Q&A session after her speech, she went on to comment that it was important to have a strategy on crypto assets; as consistent as possible across countries. The different forms of crypto assets, such as tokens, should be put on a “level playing field” with other ways of raising money, she added.