In an interview offered for CNBC on 25 January 2018, the Central Bank of Canada’s Governor told that “Bitcoin trading is gambling”.
He also reported that is preparing to implement a strict regulation about cryptocurrency usage.
Stephen Poloz added about cryptocurrencies that “They are crypto but they are not currencies. I suppose they are securities technically … There is no intrinsic value for something like bitcoin so it’s not really an asset one can analyze. It’s just essentially speculative or gambling”, reported CNBC.
The Director of the National Bank of Canada has joined other important bankers who ensure that virtual currencies will not create positive circumstances for their economies. Together, they warn the population about the negative consequences that may appear in the future.
Do you remember when in September 2017, Jamie Dimon- the CEO of JPMorgan Chase said in a press conference that “If we had a trader who traded Bitcoin I would fire him in a second for two reasons. One, it’s against our rules. Two, it’s stupid.”? Well, on 9 January 2018 he changed his opinion saying that he regrets the negative words replied by the end of 2017. However, he isn’t interested in trading cryptocurrencies.
Despite Poloz’s worries, he explained for CNBC that in case of a big crash of cryptocurrencies, the global economy will not suffer too much: “One parallel we could draw would be the tech wreck. When we had the tech wreck, that was a much more widespread exposure. And the fact it had barely had perceptible effect on the real economy because it was not a stock market crash but just a segment of the stock market. But it was highly speculative, there was all kinds of bubbles there.”
However, he believes that virtual coins have a real potential, but regardless of this, the National Bank of Canada will take care to implement a law that will allow them to control the cryptocurrencies’ usage.
What do you think about Stephen Poloz’s worries? Will he change his opinion as Jamie Dimon did?