The president of the Central Bank of Canada said that digital coins such as bitcoin are changing finances. However, she does not believe he will replace the money.
Speaking at a meeting of the Institute of International Finance in Washington, Carolyn Wilkins said:
Money worth calling money really needs to be a medium of exchange, a store of value - and the crypto-coins that are there now do not meet them - neither bitcoin nor any other digital currency.
The central bank of Canada is studying digital currencies, noting if methods of exchange could become more widespread, as less and less people use paper money. The move to digital payments raises questions about whether central banks should issue their own version of criptocoin or not.
Security would be a problem, Wilkins said, noting that digital payments depend on the power grid - so until there is a way to change value if the lights go out they are unlikely to dominate.
From the point of view of the Central Bank of Canada, we are observing everything, but no decisions have been made, "Wilkins said about a central bank's own currency and said it is still in the" initial research phase.
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