Tiff Macklem, President of the Central Bank of Canada, said Bitcoin is not a digital currency because people don’t use it to buy products and services. This is not the first time that Maccklem has taken on the digital currency.
The statement came during a conversation with CTV’s Evan Solomon, in which they discussed inflation. About this, Maccklem said that it is transient, although it will last a long time.
This is another case that reflects the obvious, the Canadian dollar may be a currency, but it’s worse than Bitcoin. Inflation in Canada hit 4.4% in September, and the forecast is that its currency will lose its purchasing power forever.
Bitcoin is not a currency
According to the President of the Bank of Canada, although digital payments are becoming more and more common, especially after the pandemic, Bitcoin is not a digital currency because people do not use it for it.
“Be clear, Bitcoin is not a digital currency. People don’t use Bitcoin to buy things… We have bills and we’re going to have them, at least while I’m a governor; they don’t leave. At the same time, we know that our economy is becoming more and more digital, and the pandemic has accelerated this. “, these Macklem
Remember the difference between bitcoin and the Canadian dollar, people are forced to accept the latter, while bitcoin is accepted voluntarily. It is obvious that its adoption takes longer.
It is also important to note that in Brazil it is easier to buy and sell items using bitcoin than using the Canadian dollar, yet no one here is saying that the Canadian dollar is not a currency. .
According to on-chain metrics, Bitcoin has made over 5 million monthly transactions for over four years. It is very likely that a fraction of it will be used as currency.
According to Maclem, inflation is transitory
In addition to being used as a currency, Bitcoin has also been an excellent hedge against the inflation that plagues several countries like Canada itself. Its controlled printing and finite number of coins is one of the main differences between currencies like the Canadian dollar.
According to reports, the Canadian currency has already lost 4.4% of its purchasing power in September of this year alone. Despite this, Maccklem claimed she was a passenger and that they “have the tools and they will put inflation back on target.”
The injection of more coins into the economy has no immediate effect, however the bill for social actions has arrived and now the population has to pay it. On the other side, we have Bitcoin, which is gaining adoption and breaking as many stories as possible.
“People don’t buy bitcoin to shop, buy their house, or fill up their gas tank.” Said the Governor of the Bank of Canada. Looks like this baby boomer may not have heard of LN yet. ?? of Bitcoin
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