Bank of Canada studying issues around a central bank digital currency

CALGARY — The Bank of Canada is looking at the key questions around the design of a digital currency and the issues surrounding such an idea, a senior Bank of Canada official said Monday.However, deputy governor Timothy Lane told a University of Calgary audience that unless the risks associated with a central bank digital currency can be managed through appropriate design, the bank would not recommend issuing such a currency.“The design of a CBDC has important implications for its risk and benefits,” Lane said according to the prepared text of his speech released in Ottawa.“Some major reasons for caution about a central bank digital currency are concerns that it could become a vehicle for illicit transactions or that it could have significant negative implications for financial intermediation.”The mystery of the $2-billion Bitcoin whale that fuelled a selloffCryptocurrency wipeout deepens to $640 billion as Ether plunges 11%Bitcoin falls off another cliff as cryptocurrency slump deepensLane said the central bank uses the term cryptoassets to describe cryptocurrencies because they do not do a good job of performing the basic functions of money. The value of Bitcoin has swung wildly with it topping US$20,000 last year and now trading around US$6,000.However, Lane said, as cryptocurrencies evolve they may touch on the central bank’s core functions including monetary policy, financial stability, payments and currency.He said the Bank of Canada is not responsible for regulating cryptocurrencies, but it has been examining the potential impact on the stability of the financial system.Earlier this year, Bank of Canada senior deputy governor Carolyn Wilkins called on authorities to work toward a set of globally aligned policies governing cryptocurrencies. She said it was important to have a strategy on cryptoassets that was as consistent as possible across countries.Lane said that differences in regulations around the world, together with the incompleteness of regulation in many jurisdictions leaves open room for regulatory arbitrage.“Differences in the regulatory treatment of these products for controlling money laundering and terrorist financing are a particularly pressing concern,” he said.Lane noted that they do not yet pose financial stability risks, but things are evolving rapidly as cryptoassets grow in size, complexity and interconnectedness.“As the underlying technologies and the design of crypto products evolve, we need to be ready to reassess how they might affect financial stability,” he said.“Some potential aspects include the integrity of payment systems, bank business models, and the exposures of financial institutions and infrastructures.” read more

Reverend suspended after being arrested on suspicion of voyeurism

first_imgA senior clergyman has been suspended by church elders after he was arrested on suspicion of voyeurism at a shopping centre.The Very Rev Martin Thrower, 55, has been banned from the pulpit for now by the Diocese of St Edmundsbury and Ipswich in Suffolk after he was detained by police.The churchman’s shocked wife Pauline said the arrest had caused his family “great sadness” but insisted they were all standing by him with “unconditional love”. Whilst this has come as a shock to us as a family we are all supporting Martin with unconditional love at this difficult time.Pauline Thrower Mr Thrower in front of St Mary’s Church, Hadleigh, SuffolkCredit:Su Anderson/Archant Mr Thrower in front of St Mary's Church, Hadleigh, Suffolk Mr Thrower, a widely-respected figure in the local church, has been rector of Hadleigh with Layham and Shelley for the last seven years.The father-of-three also holds the important regional positions of Dean of Bocking and Rural Dean of Hadleigh.Mr Thrower was arrested on August 4 at the Buttermarket shopping centre in Ipswich. He hasn’t been charged over the serious allegations but has been bailed to return to Suffolk Police HQ in Martlesham, near Ipswich, in October.John Howard, spokesman for the Diocese of St Edmundsbury and Ipswich, said: “I can confirm that The Very Rev Martin Thrower, Rector of Hadleigh, Layham and Shelley, and also rural dean of Hadleigh, has been arrested by Suffolk Constabulary for voyeurism.”He has been suspended from all offices within the diocese until further notice. We have made arrangements to look after his church duties and to offer support to his parishes at this difficult time.”Mr Howard added: “We will make no further comment while the police investigation is ongoing. Our thoughts and prayers are very much with everyone affected by this situation.” Want the best of The Telegraph direct to your email and WhatsApp? Sign up to our free twice-daily  Front Page newsletter and new  audio briefings. Mrs Thrower told the East Anglian Daily Times: “It is with great sadness that we find ourselves in the situation we are now in.”Whilst this has come as a shock to us as a family we are all supporting Martin with unconditional love at this difficult time.”Mr Thrower has led the church in Hadleigh since 2009 and leads a team that has been doing a lot of work in the local community.His determination to shake up St Mary’s in Hadleigh sparked controversy three years ago as he said he wanted to remove many pews to create a more flexible space.The Victorian Society objected to his radical scheme. But Mr Thrower, who has three children got his way after winning permission from church leaders and the work was carried out.His church has since been used by a much wider variety of community groups as a result of his pioneering blueprint.One of these is the Porch Project for youngsters aged from 11 to 20, who meet there twice a week for leisure groups.Although it is backed by St Mary’s and meets there, it is a separate organisation and supports 300 youngsters in Hadleigh.The market town has regularly been slammed for a lack of activities for young people.At the time of the firestorm over the pews in 2013, Mr Thrower insisted: “Churches weren’t built with pews in.”They were built to be the community space, to have the market in and host big meetings and we have an aspiration to return the building to being the true parish church.”last_img read more