Tiff Macklem: “Bitcoin is not a digital currency”
The Governor of the Bank of Canada highlighted that the number of transactions carried out with the cryptocurrency is very low
Tiff Macklem, governor of the Central Bank of Canada was emphatic in indicating that Bitcoin “is not a digital currency” because, in his opinion, it is not a cryptocurrency frequently for the acquisition of products. It is an “investment means” but people make very few transactions.
The governor does not hide his anti-Bitcoin position and has indicated that “despite the existence of many cryptocurrencies, no qualification to be considered currency”, referring to bitcoin as “synonymous with gambling.”
Some analysts consider that their criticism of cryptocurrencies is due to the fact that the central bank is preparing to launch its own digital currency and although they have carried out some research on the development of digital currencies, the bank has declared that “for the moment it will not be launched”.
The governor said that the Minister of Finance is the one who has the responsibility to decide if the country will have a digital currency dependent on the central bank.
Macklem stressed: “We currently have tickets and we are going to have tickets, at least for as long as he is governor; they are not going to disappear.” However, he recognizes the evolution that financial systems are undergoing towards digital. “We know that our economy is becoming more digital and the pandemic has accelerated it.”
The governor acknowledges that the crypto market is growing worldwide, but in his opinion the determining factor of this phenomenon was the pandemic caused by Covid-19, “the economy became more digital thanks to the coronavirus pandemic.”
Inflation will last longer than expected
On the other hand, the governor made reference to inflation, indicating that its durability will be longer than expected by economists. “I think economists consider ‘transitory’ as non-permanent,” but for many people, “transitory means that it will end quickly and maybe it’s not exactly the right word. It’s probably something, as you know, transitory, but not short-lived”, Macklem stated.
Currently, the inflation rate reported by Canada is 4.4 %, but the central bank estimates that by the end of the year it could be approximately 5 %, which is much higher than the 2 % forecasted.
M. Rodríguez
Source: diaribitcoin.com
