Bitcoin Won’t Replace Cash, Says Bank of Canada Deputy

Bitcoin and other cryptocurrencies are changing the world finance as we know it, says a top Bank of Canada official. However, they are unlikely to replace fiat money anytime soon.

Meet Carolyn Wilkins

Speaking at a finance meeting in Washington on Wednesday, BOC Senior Deputy Governor Carolyn Wilkins had positive things to say about digital currency, but that they ultimately fall short as a medium of exchange.

CCN.com reported on Wednesday that Wilkins had the following to say about digital currency:

Money that’s worth the name to be called money really does have to be a medium of exchange, a store of value – and the digital currencies that are out there right now don’t fulfill them – bitcoin doesn’t, none of them do.

Bitcoin and its altcoin competitors have surged this year as investment demand picked up, but considerable challenges lie ahead for mainstream payment adoption.

Wilkins acknowledged that Canada’s central bank is considering its own digital currency, but is still in the early stages of research. Earlier this week, reports out of Russia suggested that the Kremlin was eyeing a digital token of its own. The so-called CryptoRuble is Russia’s attempt at regulating the digital currency market. Its adoption has strict provisions, including an outright ban on digital currency mining.

Like other central banks, the BOC is no doubt intrigued by blockchain – the ledger technology underpinning bitcoin. The Bank of England and Bank of Japan have also signalled their interest in blockchain technology.

The digital currency market has been on fire as of late. Prices have cooled in recent sessions on what looks like a healthy correction. Bitcoin’s market cap surpassed $95 billion last week at the height of the rally, with several altcoins quickly following suite. Bitcoin’s capitalization has since fallen below $92 billion, according to CoinMarketCap.

Featured image courtesy of Shutterstock.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi