Government Not Innovation in Digital Currencies,Canadian Senate

A recently released report of the Canada Standing Senate Committee on Banking, Trade and Commerce states that, “it is critical that government action does not stifle innovation in digital currencies and its associated technologies that are in early and delicate stage of development.” The report titled, “DIGITAL CURRENCY: YOU CAN’T FLIP THIS COIN!” was released for the ongoing month.

The best points of the 64-page report arrive on Page 58 under Conclusion. One important observation of the Committee is:

“… the Committee has concluded that digital currencies and their technologies present a variety of opportunities. In the Committee’s view, it is likely that the innovation underlying these currencies and technologies has applications that have not yet been imagined. There is evidence that they reduce transaction costs, increase the choices available to customers and merchants, protect users’ identities and record all transactions. A key focus, then, is the actions that the federal government and other entities could take to maximize those opportunities.”

The Standing Senate Committee mentions of the risks plaguing the digital currency space, such as money laundering, terrorist financing, cyber attacks, cryptocurrency exchanges going insolvent, price volatility, and several tax norms.

Therefore, keeping in mind the opportunities that the digital currencies such as Bitcoin and the blockchain technology offer, and also lending weight behind the government’s primary objective of protecting the citizens from the risks, the report recommends adoption of a balanced regulatory stance when considering the digital currency space.

Final Word: Support the Digital Currencies

As the report comes to a close, the Committee states that the opportunities presented by digital currencies and the underlying technology far outweigh the challenges. The Committee expects timely implementation of its recommendations to have significantly positive results for consumers, merchants, digital currency businesses, Canada’s financial services space and others.