Bank of Canada Addresses Digital Currencies

Note from the CEO:  Forex hedging smoothes volatility and so could adoption of digital currency exchange rates. Singapore has begun regulatory guidelines and the central bank of Canada says digital currencies may actually stabilize price movement. Seems every day central banks worldwide are getting deeply involved and actually starting to do things. Good or bad?

“The central bank of Canada has published a new working paper that suggests its researchers believe digital currency exchange rates will become less volatile should adoption increase.

Penned by researchers Wilko Bolt (of the central bank of The Netherlands) and Maarten RC van Oordt (of the Bank of Canada’s Financial Stability Department), the paper offers a possible “economic framework” for exchange rate analysis. Published on 18th August, it further represents the latest work from a major central bank, following growing interest from this segment of the financial community in recent months.”

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