Crypto Boom Is ‘Speculative Mania,’ Bank of Canada’s Lane Says

A top Bank of Canada official called the recent spike in cryptocurrency prices “speculative mania,” and said such assets don’t have the qualities to become the money of the future.

In a speech on “payments innovation,” Deputy Governor Tim Lane said costly verification methods and unstable purchasing power makes cryptocurrencies like Bitcoin a “flawed” method of payment.

“The recent spike in their prices looks less like a trend and more like a speculative mania -- an atmosphere in which one high-profile tweet is enough to trigger a sudden jump in price,” Lane said Wednesday.

Timothy Lane speaks at a Montreal conference on Feb. 25, 2020.

Photographer: Christinne Muschi/Bloomberg

The remarks underscore the extent ...