The Bank of Canada’s senior deputy governor says the central bank doesn’t want to wait until crypto “gets too big” before it brings regulatory control. “It is an area that is still small, but it is growing really fast,” the official said.
Bank of Canada official stresses importance of crypto regulation
Carolyn Rogers, senior deputy governor of the Bank of Canada, spoke about cryptocurrency regulation in an interview with Reuters on Thursday.
“It’s an area that’s still small, but it’s growing really fast. And it’s largely unregulated,” she explained, adding:
We don’t want to wait until it becomes too big before we bring regulatory control.
The total crypto market capitalization has fallen below $1 trillion after Monday’s sell-off. According to data from Bitcoin.com Markets, the total market cap of the entire crypto market at the time of writing is approximately $918 billion.
According to the Central Bank of Canada, the share of Canadians owning bitcoin more than doubled to 13% in 2021, from 5% in 2020.
“Like any asset that is jumping in price, people see an opportunity for a quick profit,” Rogers elaborated:
Our concern is that they may not understand the risks. They may not even understand that this is not a regulated area.
The senior deputy governor of the Bank of Canada stressed that the crypto industry needs to be regulated. “These are somewhat like banking assets, somewhat like capital markets,” she described.
However, Rogers pointed out that there are challenges, stating:
One of the challenges is figuring out how they fit into the current regime, and if they don’t, how do we adjust the regime so that they do fit.
What do you think about the comments of the Senior Deputy Governor of the Bank of Canada regarding crypto? Let us know in the comments section below.
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