Can cryptocurrency protect you from inflation?
Mark Zelmer is the former deputy superintendent of financial institutions at OSFI and senior fellow at the C.D. Howe Institute. Jeremy Kronick is associate director of research at the C.D. Howe Institute.
Crypto assets such as bitcoin and ethereum and their decentralized blockchain technology offer the promise that, at some point in the future, it may be possible to price goods and services and have one’s savings denominated in, say, bitcoin or ethereum terms, and then conduct transactions in a quicker, more secure fashion than is possible in today’s financial system with its aging IT infrastructure.
Even if the rules of the game encouraged more stable demand such that we largely eliminate the daily volatility in prices, assets such as bitcoin and ethereum are also unlikely to serve Canadians well against more persistent trends in inflation. One of the reasons the gold standard was abandoned by most countries in the 1930s was because it was too rigid a straight-jacket; the supply of gold could not adjust to the shifts in demand for money over the course of an economic cycle.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Opinion | Canadian politicians are offering solutions to inflation that could make things worseOpinion: Inflation is an insidious economic challenge and fiscal policy has more flexibility to finesse its solutions than monetary policy, hscoffield writes.
Read more »
Bought or sold crypto for the first time in 2021? Here's how you'll be taxedIf you\u0027re making money in the cryptocurrency space, the government will want its cut
Read more »
Why are commodity prices spiking?Rising inflation and the war in Ukraine are stark reminders of how commodities affect us all
Read more »
Daily poll: Are you worried about rising inflation and interest rates?Canadians are facing soaring interest rates aimed at curtailing soaring inflation — the price of things
Read more »
Brian Mosoff: Cryptocurrency isn't a 'Wild West' to be tamed with outdated regulationsRegulators have an important role to play in the building of this new world, but great caution should be exercised in imposing old paradigms on new technology
Read more »
Cryptocurrencies gaining traction among Conservatives -- here are some reasons whyConservative MP Michelle Rempel Garner says she hopes her bill to help grow the cryptocurrency sector will get Canadian legislators talking about it in a non-polarized way.
Read more »