Bitcoin hogged the headlines after the virtual currency, which is not traded on world markets, smashed its way to historic peaks. At the start of the year, the currency was valued at $1,000 (U.S.) per coin; it’s now worth more than $11,000 (U.S.) per coin.

In a research paper released by the central bank Thursday, report authors Walter Engert and Ben Fung said there are merits to creating a central bank digital currency as society starts to move away from cash, and the bank’s potential to reap profits off issuing that cash could be threatened.

Source: Toronto Star

Date: December 1st, 2017

Link: https://www.thestar.com/business/tech_news/2017/11/30/bank-of-canada-releases-white-paper-on-merits-of-creating-digital-currency.html

Discussion

1) Why have cryptocurrencies only started to be relevant now (and not, say, 10 years ago)?

2) Why is important for the Bank of Canada to take a stance on cryptocurrencies?