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Cryptocurrency Could Profit Canadian Economy - Bank of Canada paper

Jake Hill
Jake Hill

A Canadian researcher, states cryptocurrencies which are launched with the backing of the governments, as well as authorities, can actually result in a significant amount of gain for the government.

According to the research report, if such cryptocurrencies were launched, the consumption in Canada will increase by 0.64%. Similarly, the consumption in the United States will increase by 1.6%. The scenario was compared with using cash prior to the usage of cryptocurrencies.

Many Central Banks are still Exploring this Idea:

It is not like Central Banks are not thinking about the idea. All over the world, many central banks are exploring the idea as to whether a government-backed cryptocurrency will be beneficial for the economy or not.

There are increasing indications that in the future, such a cryptocurrency may become a reality as well. This will ensure that the investor’s trust the cryptocurrencies even more. As a result, it will become much easier for the investors to invest in cryptocurrencies as well. Moreover, since there will be something like a sovereign guarantee, the risk will be on the lesser side. Owing to a large number of investors, the volatility will also be on the lower side. As a result, it will become easier for the investors to keep holding to the cryptocurrencies as well.

Moreover, the price movement in the cryptocurrency will be directly dependent on the condition of the economy of that particular country. As a result, investors will be able to reap the benefits of growth in the economy of that particular country as well. This will ensure that they are able to not only benefit from the rise in the cryptocurrency prices but also the economic development of that country as well.

The only thing which remains to be seen is whether any of the Central banks actually bites the bullet and launches such a cryptocurrency. Also, once a central bank launches such a cryptocurrency backed by a sovereign guarantee, the other banks will do the same as well. This will ensure that cryptocurrencies which are launched by the countries will not be a thing of the future. They will be directly available all over the world and the investors will be able to get a significant amount of investment options as well. This will ensure that the credibility of cryptocurrencies increases significantly as well.

Also, only after one such cryptocurrency is launched, the investor attention and as well as appetite can be estimated.

canadaResearch and Education

Jake Hill

Coming from a University Education in Computer Science, I am interested in blockchains and Bitcoin since 2014 and even mined at the time. The rumors of Bitcoin bubble made me run away, but I have com