The Bank of Canada’s senior deputy governor is calling for authorities to work toward a coherent set of globally aligned policies governing cryptocurrencies.
Carolyn Wilkins told a University of Toronto conference on Thursday 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.”
“While activity might be too small right now to be systemic, at some point they could have implications for financial stability,” she told the audience at the Rotman School of Management.
“The crypto world is moving fast, and is largely unchecked.”
In a speech that was largely focused on lessons learned from the global financial crisis, Wilkins said that risk raises concerns about investor protection, market integrity and the use of crypto assets in illegal activities.
She also said during a question and answer session after her speech that it was important to have a strategy on crypto assets that is 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.
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