Bank of Canada ‘Watching Developments Closely’ in re: E-Money
Nov. 17, 2014
The Bank of Canada took time last week to officially send notice that e-money is under scrutiny. The central bank defined e-money as electronically stored value that is not linked to a bank account. E-money underlies many of the alternative payment methods used to perform online transactions – the Bank of Canada’s Senior Deputy Governor Carloyn Wilkins specifically called out PayPal, stored-value cards and Bitcoin at a speech at Wilfrid Laurier University in Waterloo, Ont.
“People who use these technologies need to be aware of the risk of putting their trust in an e-money scheme that is lightly regulated with limited or no user protection,” Wilkins said. “E-money is not big enough to pose material risk to financial stability in Canada at this time. That said, money and payments technology is progressing in leaps and bounds, and so the Bank of Canada is watching developments closely.”