Canadian Economist Prepares Economic Note on Bitcoin Regulation
Canadian economist David Descôteaux has prepared an economic note on the topic of bitcoin. Specifically, the discussion takes a look at bitcoin regulation, and the Canadian government's plans to put together legislation on this emerging digital currency and payment system. In his report, he lists three items that need to be tackled before bitcoin is considered a currency. Three conditions would need to be met for the expansion of the use of bitcoin as a currency, which remains very limited at the moment. First, users would need to receive concrete benefits rather than some other one, a....
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Earlier today, NEWSBTC and a number of other publications posted about an economic note on bitcoin regulation by David Descôteaux of the Montreal Economic Institute. Descôteaux's report suggested that bitcoin would require regulation in order to thrive, but according to the Canadian Bitcoin Foundation, they would much prefer if the government kept out. In an statement issued on Thursday, Bitcoin Foundation Canada welcomed the publication of the report, but fundamentally disagreed with points made by Descôteaux. "Government intervention is not required for Bitcoin to develop and become....
The chief economist at the International Monetary Fund (IMF) says that regulation is “absolutely important” for the crypto sector. She added that banning cryptocurrencies, like what India could be considering doing, would pose practical challenges given their decentralized nature. IMF’s Chief Economist on Cryptocurrency and Its Regulation International Monetary Fund (IMF) chief economist Gita Gopinath reportedly discussed cryptocurrency Wednesday at an event organized by the National Council of Applied Economic Research (NCAER). Gopinath is also the IMF’s....
The Montreal Economic Institute (MEI) has released an economic note on the state of Bitcoin regulation in Canada and around the world. The MEI is an independent research and education organization which, according to their website, "stimulates debate on public policies in Quebec and across Canada by proposing wealth-creating reforms based on market mechanisms." In the note, the MEI points to the recent collapse of Mt. Gox (and subsequent consumer fallout), as evidence of the need for governmental clarification of Bitcoin's legal status. This is because "(R)etailers, consumers and....
An economist with the Bank of International Settlements has found that cryptocurrencies are not sought as an alternative to fiat currencies or regulated finance, therefore a “technology-neutral regulation to this asset class” is recommended. The economist discussed “embedded supervision,” adding that “The main aim is low-cost supervision of decentralized markets.” BIS Economist Suggests Regulatory Approach for Cryptocurrencies The Bank of International Settlements (BIS) published a working paper Thursday on “The socioeconomic drivers of US....
The Bitcoin Foundation Canada welcomes the publication of a report on Bitcoin regulation in Canada, entitled “How should Bitcoin be regulated?” The growing interest of Canada’s economic community towards Bitcoin is proof that this new technology provides a credible alternative to traditional monetary and banking systems. Government intervention is not required for Bitcoin to develop and become accepted by the Canadian public. The Bitcoin network is completely decentralized and it simply cannot be subjected to government control. However, a growing number of Canadian businesses and....