Bank of Canada: Governments need to regulate Bitcoin

A paper published by researchers at the Bank of Canada explores the viability of digital currencies, looking to past examples of Canadian currency as a guide. The initiative is called Project Jasper and it examines building a payments system using the technology, but signs indicate that further work is needed before it might one day reach commercial scale.

Among the banks assertions: Bitcoin and other private digital currencies may flourish, yet they will need government support to keep consumers safe. Bank of Canada has previously voiced their concerns about digital currency, saying in November 2015 that the popularity of digital currency could lessen the effectiveness of monetary policy, according to CoinDesk.