Investors shouldn't rely on cryptocurrencies as a way to hedge inflation risks as they are far from being a stable source of payment or a stable source of value, Global News reports, citing Bank of Canada governor Tiff Macklem.
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Currently, the regulator doesn't see cryptocurrencies as a "way for Canadians to opt out of inflation or a stable source of value."
"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," Macklem added.
He also rejected the idea of replacing fiat with crypto, saying that the Canadian dollar "will remain at the center" of the Canadian financial system despite the recent rise of interest in cryptocurrencies. Speaking of inflation, Macklem suggested Monday that prices in the country will likely be higher for longer period than it was initially anticipated, but hinted that he personally believes that the country is "close to the peak."
Earlier in April, the Bank of Canada revealed that although bitcoin (EXANTE: Bitcoin) investors know better the basis of blockchain, they are less financially educated than those who don't have cryptocurrencies. According to the result of surveys conducted between 2019-2020, almost 90% of the population were aware of bitcoin, while only 5% owned it.
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