With her feet standing upon the shores of beach fiat, Carolyn Wilkins, the senior deputy governor for Bank of Canada stated on Thursday that the incoming Bitcoin tsunami does not currently pose a risk to stability in Canada. Conceding that the tsunami will indeed reach the shore, she continued by saying that Bitcoin must be watched closely for any threat it poses to the financial system.
In the run up to discussing the actual problem faced by the Bank of Canada when confronted with Bitcoin, Wilkins cited the closure of Mt Gox and the lack of recourse available to consumers when bitcoin is either lost or stolen. Addressing the real problem, Wilkins said:
"In the unlikely situation in which cryptocurrencies were used broadly, a significant proportion of economic transactions would not be denominated in Canadian dollars. This would reduce the bank's ability to influence macroeconomic activity through Canadian interest rates."