Bank Of Canada Governor Does Not Consider Bitcoin A Currency

Where Do I Sell My Bitcoin?

Tiff Macklem, the Governor of the Bank of Canada, has claimed once again that BTC cannot be categorized as a form of currency as it does not have the adequate characteristics for being utilized in transactions. While talking to CTV News, Macklem (who has upheld his sceptical viewpoint regarding digital assets) stated that Bitcoin (BTC) is not to be utilized for everyday transactions notwithstanding the allocation thereof to be a legal tender on the behalf of countries such as El Salvador.

Pandemic, crypto transition, and IMF

In the same vein, more merchants carry on to use BTC as an option for payments. Governor considers that the present system consisting of banknotes is to endure for a long time however he admits that the public’s move towards digital transactions has been expedited by the pandemic. He added that the categorization of Bitcoin cannot be done under the heading of digital currency. People do not purchase the daily necessities of life by using it as a payment method generally. Nonetheless, COVID-19 provided a boost for the economy to get digitalized on a large scale, he mentioned.

In a recent interview, it has been disclosed by Macklem that notwithstanding the presence of several cryptos, none succeeds to be characterized as a currency, thus “crypto-assets” should be suitable as their name, he asserted. He further stated that the crypto sector should be restructured to provide support for a wide range of transactions, and that requires improved international cooperation. The Governor also emphasized that several transitions are to be expected in the system of the IMF (International Monetary Fund). As per him, a radical transformation toward digitalization has chiefly been stimulated on the behalf of the pandemic of coronavirus.

The CBDC’s role

Moreover, he revealed that the finance ministry of the country would decide about the likely CBDC to be issued by the Central Bank of Canada. Nevertheless, the organization has invested considerably in the research to figure out the possible development in the project of CBDC. In July, a report was released by the country’s central bank which recommended a digital currency to be of core importance in the scenario of digital innovation as well as a heated up competition between the service providers of cryptocurrency.