As a result of the growing interest of people and corporations in Bitcoin, global regulators have started to take it more seriously and … focus only on the risks of these investments.
The Deputy Governor of the Bank of Canada, Timothy Lane, also addressed the issue and called the rally of digital currencies “speculative mania.”
He is referring, of course, to the recent announcement by Tesla that it purchased $1.5 billion worth of BTC, which made Bitcoin grow and establish a new ATH.
Lane also went on to say that Bitcoin “does not have a plausible claim to become the money of the future.”
What About Private Currencies?
Lane believes there is a future for digital currencies, but only if they are issued by a central bank and not by a private company. He went on to say that if private players start issuing digital currencies, then that won’t be in the best interest of the public.
He also spoke about data harvesting by tech companies, and his opinion is that it’s a dangerous business model for the mass economy:
Meanwhile, the Bank of Canada started studying the viability of issuing its very own digital currency.