The Pension organization of Canada and its investment-related department, the largest saving fund in Canada, has decided to ban all of its cryptocurrency-related plans. Firstly, it was planning to use that sort of assets as investment to gain additional profits.
But due to a number of recent crypto crises, the organization decided to abandon such plans. Unfortunately, it did not provide any explanations on the matter. But still, it was stated that crypto as an investment form was not totally abandoned. At least, there was no formal denying of that.
Recent crypto-collapses led to doubts about the market stability
After FTX and Celsius have filed for bankruptcy, the state of the market became more unstable than it ever was. In light of this situation, Canada’s largest state department of retirement funds had to get rid of crypto as a means of investment.
Currently, the authorities deny being connected to crypto in any way. That was done in order to stay safe from the possible cryptocurrency-related risks and not to expose its clients to risky financial assets.
The leader of the department recently made an announcement, that the decision to abandon crypto was made due to the department’s safety measures.
However, according to some sources (that preferred to stay anonymous), the Canadian pension fund may not have completely abandoned its programs to use crypto-related investment in the future.
There are currently no laws that prohibit such sort of organizations from using crypto. But still, it is rumored that Canadian state authorities have a reputation for having conservative policies. They prefer conventional money to any other form of crypto assets.
The Canadian investment fund is still the corporation with close to no connection to the crypto world. Especially when compared with other finance-related state departments and businesses.
But still, in the light of the current crisis, blockchain and crypto no longer seem to be a secure and promising investment, not now at the very least. So the precautions measures made by the Canadian authorities might be reasonable, at least for a couple of months.