11:32Here's Why Canadian Government Won't Hold Bitcoin
In a reply to BNN Bloomberg, the Department of Finance Canada confirms that he has no plans to hold the cryptocurrency just yet, with volatility cited as the main reason why.
The foreign reserves of the country's central bank are managed in accordance with its asset-liability matching framework.
Because of its wild moves, the biggest cryptocurrency cannot be matched against liabilities:
Image by mecometer.com
Last week, Bitcoin collapsed almost 20 percent in the span of 16 hours before soaring back above $40,000 in three days.
Five major Canadian commercial banks have declined to comment on whether or not they would start holding Bitcoin.
Volatility means resilience
Last week, former U.S. Treasury Secretary Lawrence Summers mentioned that Bitcoin's volatility has actually made it more resilient:
Investment management firm Man Group even likened Bitcoin to Greek Titan Prometheus because of its ability to survive a metaphorical bloodthirsty eagle.
Meanwhile, investing icon Bill Miller opined that the cryptocurrency is less risky when it is more expensive.
|Total comments: 0|
|Mega Chop is Expected in Bitcoin Market Amidst “Continued Appetite” from Big Investors (0)|
|Bitcoin is tens of thousands away from “overbought” territory, study suggests (0)|
|Bitcoin’s chances of hitting $100,000 in 2021 stumble as Kanye West tipped to buy $100m (0)|
|Bitcoin and Ethereum Form A Bullish Reversing Chart Pattern (0)|
|Bitcoin and Ethereum slow down as transaction values and fees plunge 70% (0)|
|BITCOIN PRICE BOUNCES BACK ABOVE $50,000 AS PROMINENT INVESTOR PREDICTS IT COULD RISE TO $5M (0)|
|Bitcoin is set to soar (0)|
|Traders Fear "Black Thursday" Comeback as Bitcoin Returns in March Mostly Negative, Statistics Say (0)|
|Bitcoin to $10,000 or $100,000 in 2021? (0)|
|Citigroup & Goldman Sachs: Bitcoin’s Moment Is Now (0)|