Canadian Dollar to Remain Despite Growing Calls for Stablecoin Adoption

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26 April 2022 11:00 UTC

Bank chief says the Canadian dollar will remain at the center of the country's financial system.
The central bank was responding to claims made by the Conservative leadership candidate.
Officials have argued that crypto is not a way to “opt out” of inflation

The Canadian dollar will remain at the center of the country’s financial system despite a pledge by an opposition leader to make Canada the blockchain capital of the world.

“There are promising benefits from innovation in the financial sector. Having said that, we certainly expect the Canadian dollar will remain at the center of the Canadian financial system,” said Bank of Canada Governor Tiff Macklem.

Canadian leadership candidate promises to “unleash” potential of crypto

Macklem was responding to claims made by the Conservative leadership candidate before a parliamentary committee. Last month, the Conservative leader Pierre Poilievre had promised to “unleash” the potential of crypto if he becomes prime minister, and make Canada “the blockchain capital of the world.”

Poilievre criticized the Trudeau administration for rising inflation and claimed the “government is ruining the Canadian dollar, so Canadians should have the freedom to use other money, such as bitcoin.”

Senior deputy governor Carolyn Rogers said: “I think if Canadians are looking for a stable source of payment and a stable source of value, cryptocurrencies don’t really meet that test.”

The discussion comes at a time when Canada’s annual headline inflation rate last month hit a three-decade record at 6.7%.

However, the top central bank officials reportedly claimed that crypto is not a means to “opt-out” of inflation.

“There’s some important innovations there and I think the legislative review will allow us to explore those innovations but also look for ways that we can get at those benefits in a more regulated environment,” Rogers added.

Earlier last month, blockchain leaders in Canada launched a nonprofit to drive the country’s federal regulatory framework of crypto assets.

However, the Bank of Canada has been of the view that crypto is a “speculative investment.” The bank had earlier stated that cryptos “do not have a plausible claim to become the money of the future.”