Cryptocurrencies not a way to ‘opt out of inflation’: Bank of Canada official

A senior Bank of Canada official poured water on the idea that cryptocurrencies are a good hedge against inflation as the federal finance committee asked central bank leadership about the path to getting surging prices back under control.

Bank of Canada governor Tiff Macklem and senior deputy governor Carolyn Rogers were asked by Liberal MP Yvan Baker at Monday’s committee whether the use of digital currencies such as Bitcoin is an effective strategy to “opt out of inflation.” “I think if Canadians are looking for a stable source of payment and a stable source of value, cryptocurrencies don’t really meet that test,” Rogers said. “We don’t see cryptocurrencies as a way for Canadians to opt out of inflation or a stable source of value.” Conservative Party leadership candidate Pierre Poilievre has made that claim amid a move to embrace the technology. Read more: Crypto space gaining traction among some Conservative MPs But Rogers said various digital currencies have been more volatile than gasoline prices, most commodities and the Canadian dollar exchange rate.

Rogers did say there was “some promise” in cryptocurrencies, citing the possibility of the tech bringing “more efficiency to payments” and more “competition to the financial sector.” She said the federal government’s legislative review of the technology could show a path to embrace crypto while protecting consumers. “There’s some important innovations there and I think the legislative review will allow us to explore those innovations but also look for ways that we can get at those benefits in a more regulated environment,” she said.

While the Bank of Canada has recently moved from studying crypto to a “development stage,” Rogers said it will be a decision for