Bank of Canada Calls Crypto Assets an Emerging Vulnerability

The Bank of Canada said volatility in cryptocurrency assets is an emerging vulnerability to the country’s financial system, a day after a major selloff in the sector.

In its annual review of financial risks, policy makers led by Governor Tiff Macklem said Thursday that while crypto markets are not yet of systemic importance as an asset class or method of payment, that could change “if a large technology firm -- a so-called Big Tech -- with a sizable user base decided to issue a cryptocurrency that became widely accepted as a means of payment.”