Carolyn Wilkins, senior deputy governor of the Bank of Canada recently warned banks about the effect that cryptocurrencies like Bitcoin CT r: 7 can bring to the monetary policy. According to the speech “Innovation, Central-Bank Style” Canada’s banks should manage the risks and benefits that could arise from the broader adoption of e-money. According to Carolyn Wilkins: “As we think about alternative futures, we have to envision a world in which people mostly use e-money, perhaps even one that’s not denominated in a national currency , such as Bitcoin. This would create a new dynamic in the global monetary order, one in which central bank s would struggle to implement monetary policy. And, central banks couldn’t act as lenders of last resort as they do for their own currencies.” The senior deputy governor of the Bank of Canada stated that according to the corporate plan the bank will explore modern financial and technology trends over the course of three years. The bank will focus on studies of modern economic statistics and behavioural economics. We have reached out to a number of experts in Canada to learn what they think about emerging financial policy, Blockchain technology rise and latest Carolyn Wilkins speech. “Carolyn Wilkins’ remarks about the value of an innovation-friendly culture are very encouraging, and it is great that the Bank of Canada is adopting a positive attitude to innovations such as the blockchain. We are also sensitive to her worries about the blockchain’s disruptive potential – how effective monetary policy can be conducted, and whether it will remain possible to for the BoC to act as ‘lender of last’ resort.” Reasons of concern FinTech and Blockchain technology saw a tremendous growth throughout the recent years. Carolyn Wilkins has pointed out once again that banks are worried of having […]
