Governor Of Bank Of Canada Prefers Cash Over Crypto

Throughout the presentation given to the Empire Club of Canada, Stephen S. Poloz the Governor of Bank of Canada gave few intricating reasons why he believes cash is better than cryptocurrencies so we find out more about it in the latest crypto news.

Poloz talked about the influence technology plays in how Canadians made payments. He hinted that the magnitude of work in renovating the 20-year-old wholesale payment system should be finished in 2020. The Governor of Bank of Canada claimed that in around 2-3 years, consumers would have the possibility to fulfill transactions between themselves in real-time. He said that this was a major advance over lags in the current system. Even though these advances are lagging behind current cryptocurrency technology. Stephen S. Poloz’s financial darling is an instrument that is less technical.

 “Now these prospects have the bank thinking hard about the future of… money. Especially cash, which is really my favorite.”

Ten years ago, 50% of all payments in Canada were made in cash. A decade later this fall around 33%, which is still a huge proportion compared to nations of likewise development. Poloz explicated that the payment through cards and mobiles is becoming more frequent and also that “Certain businesses have begun to accept only electronic payments.” However:

 “I believe that central bank money, the banknotes you have in your pocket, will always provide an important public good. It’s an individual’s sovereign right to make payments with an instrument which is universally accepted and final.”

Commonly accepted, with the exception of those businesses that he previously mentioned, that only accept electronic payments. He also adds that private cryptocurrencies can’t deliver that, irrelevant how innovative or spread their usage becomes. Yet again, one can only assume, except if their use becomes so common that is globally accepted.

 “The other nice thing about cash is that it will still work even during power blackouts or cyber-attacks. As a consequence, banknotes will probably always be around to some degree, if only as a contingency for unusual events.”

You read it yourselves people. Stephen S. Poloz the Governor of the Bank of Canada advises you to keep a bundle of cash in your backyard just in case if there is a power shortage.