November 12 – 18, 2019 | Bank of Canada’s Digital Currency, Negative Interest Rates and Crypto, and More

North iQ Weekly Newsletter is curated to provide insights on digital asset industry developments, market announcements, and performance analysis.

Bank of Canada’s Digital Currency is ‘Contingency Planning’ for Future Digital Currency Growth

November 15 – According to a senior official at the Bank of Canada, the central bank is mulling the launch of its own digital currency once other private digital currencies begin to gain traction in the economy. During an event at the Federal Reserve Bank of Philadelphia last Friday, Bank of Canada deputy governor Timothy Lane said that he envisions a future where the Bank of Canada issues its own digital currency before other alternatives become more widely used for transactions within the Canadian economy. The Bank of Canada’s digital currency is being explored as a contingency plan once the issuance of a public digital currency becomes necessary. “We’re actually now at a bit of an inflection point where we’re kind of moving from research to something that feels a lot more like contingency planning, because we’re aware that the world can change very quickly,” said Lane. “The world could change in a way that would very rapidly transform the way that people pay for things. And if we start to think about what we might do in reaction to that when that starts to become evident, then that’s going to be too late.”

Read the full article from Financial Post here.

Negative Interest Rates Could Drive Greater Crypto Investment

November 17 – CoinShares, a digital asset management firm, has released its Crypto Trends Report for November 2019 which suggests that negative interest rates could soon pressure traditional banking models and shift advisor investment strategies in favor of cryptocurrencies. The report suggests that a combination of negative interest rates, dovish monetary policies, Brexit, and the upcoming federal election in the United States could be spurring demand for bitcoin, which has established itself as a form of “digital gold” over the last several years due to its fixed supply and non-correlation to some traditional asset classes. Bitcoin’s spot markets have become more matured thanks to the introduction of physically-settled futures and other institutional-grade custody services coming online this year. On a global scale, bitcoin has now established a myriad of on and off-ramps, and the report suggests that this gives it advantages over physical gold in terms of trade.

Read the full article from Bitcion Exchange Guide here.

Bitcoin and Ethereum are ‘Formidable Collateral Economies’

November 18 – In a recent Tweet, Chris Burniske, an early cryptocurrency advocate and influencer, noted that both Bitcoin and Ethereum are already representing “formidable collateral economies” which are moving beyond just being mediums of exchange. According to Genesis Capital, the cryptocurrency lending sector had a record-breaking third quarter of $870 million USD in new originations. Burniske suggests that Ethereum, in particular, has a burgeoning collateral economy being built around it, which could decrease its future volatility or perhaps increase ether prices as supplies become increasingly locked up as collateral within decentralized finance (DeFi) platforms. However, some experts claim that bitcoin will remain the most common form of collateral within DeFi. “BTC’s ‘collateral economy’ is much larger than ETH’s — BTC is the primary form of collateral for derivative markets that have cleared more than $1 trillion in annual trading volume. Similarly, Genesis Cap shows time and time again that BTC is the best collateral for crypto loans,” said Max Bronstein of Coinbase in a tweet.

Read the full report from U.Today here.

Worldwide Bitcoin ATMs Hit New Milestone, Surpassing 6,000

November 17 – According to the online resource CoinRadar, the number of bitcoin ATMs installed around the world has now surpassed a new milestone of 6,000. The United States is home to 3,924 bitcoin ATMs, while Canada is home to 653 ATMs. The remaining ATMs are found within Europe and Asia at 20% and 2% of the total ATMs, respectively. The number of new ATMs has increased by around 1,000 since June 2019, indicating that the industry has grown significantly this year. In October, Miami International Airport installed its first bitcoin ATM with hopes of providing convenience for international travelers who prefer to use the cryptocurrency for payments. “More and more people prefer to travel with Bitcoin instead of cash for convenience and security. Miami International Airport is a perfect place for our customers to conveniently exchange their dollars for Bitcoin and vice versa when traveling domestically or abroad,” said Doug Carillo, the chief strategy officer Bitstop, a Bitcoin ATM firm.

Read the full article from Coin Telegraph here.


The Peoples Bank of China Wants ‘Controllable Anonymity’ for China’s Digital Currency

November 12 – An official at the People’s Bank of China (PBOC) has announced that its planned digital yuan may balance functionality with anonymity due to demand from the general public. “The demand from the general public is to keep anonymity by using paper money or coins,” said Mu Changchun, the director-general of the PBOC’s Institute of Digital Currency. “We are not seeking full control of information on the general public.” The PBOC is expecting to use some form of “controllable anonymity” for “people who demand anonymity in their transactions”, while at the same time, the digital currency “would keep the balance” to ensure that anti-money laundering and anti-terrorist financing rules within the country can still be followed. Mu Changchun announced that China would not be targeting capital markets or trade-financing centers with its planned digital currency just yet, although he did not rule out these initiatives in the future. According PBOC officials and patents registered by the PBOC, consumers or businesses would be able to download a digital wallet on mobile devices, then move cash from traditional bank accounts into these wallets to later send or receive payments from other wallet users.

Read the full article from the Bloomberg here.

Read the article here.

3iQ Bitcoin Trust (Class A) : NAV as at November 15, 2019

Underlying cryptoasset prices sourced from Bloomberg.View charts and more fund data at here.

3iQ Global Cryptoasset Fund (Class A): NAV as at November 15, 2019

Underlying cryptoasset prices sourced from Bloomberg.View charts and more fund data at here.

3iQ Corp. (“3iQ”) is the first Canadian investment fund manager to agree to terms and conditions with the Canadian securities regulatory authorities which permit 3iQ to manage a multi-cryptoasset investment fund available to Canadian accredited investors. 3iQ provides accredited investors with exposure to bitcoin, ether, and litecoin through its 3iQ Global Cryptoasset Fund.

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This Weekly Cryptoasset Newsletter is for informational purposes only and does not constitute, either explicitly or implicitly, any provision of services or products by 3iQ Corp (“3iQ”). Investors should determine for themselves whether a particular service or product is suitable for their investment needs or should seek such professional advice for their particular situation.3iQ Corp. makes no representation or warranty to any investor regarding the legality of any investment, the income or tax consequences, or the suitability of an investment for such investor. All content is original and has been researched and produced by 3iQ unless otherwise stated therein. No part of the content may be reproduced in any form, or referred to in any other publication, without the express written permission of 3iQ. All statements made regarding companies, securities or other financial information contained in the content or articles relating to 3iQ are strictly beliefs and points of view held by 3iQ and are not endorsements of any company or security or recommendations to buy or sell any security. No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. By visiting and/or otherwise using the 3iQ website in any way, you indicate that you understand and accept the terms of use as set forth on the website and agree to be bound by them. If you do not agree to the terms of use of the website, please do no access the website or any pages thereof. Any descriptions of, references to, or links to other products, publications or services does not constitute an endorsement, authorization, sponsorship by or affiliation with 3iQ with respect to any linked site or its sponsor, unless expressly stated by 3iQ. Any such information, products or sites have not necessarily been reviewed by 3iQ and are provided or maintained by third parties over whom 3iQ exercises no control. 3iQ expressly disclaims any responsibility for the content, the accuracy of the information, and/or quality of products or services provided by or advertised on these third-party sites. The information contained herein, while obtained from sources believed to be reliable, is not guaranteed as to its accuracy or completeness and confers no right on purchasers. Past performance of cryptoassets is not indicative of future performance and should not be used to forecast any return that an investor may realize.

Fred Pye

Frederick T. Pye


Frederick T. Pye is the Chairman, Chief Executive Officer and Director of 3iQ Corp. He is also the Chairman and Director of 3iQ Digital Holdings Inc. Mr. Pye is recognized for creating and promoting creative and unique investment products for the investment industry.

Mr. Pye has managed private client portfolios with Landry Investment Management and various other investment dealers. Prior to this Mr. Pye was Founder, President & Chief Executive Officer of Argentum Management and Research Corporation, a company dedicated to managing and distributing quantitative investment portfolios including the first long-short mutual fund in Canada.

He was also Senior Vice-President and National Sales Manager of Fidelity Investments Canada and an integral part of the team that saw assets rise from $80 million to over $7.5 billion in assets under management during his tenure. He also held various positions with Guardian Trust Company, which listed the first Gold, Silver and Platinum Certificates on the Montreal Exchange.

Mr. Pye obtained a Masters in Business Administration from Concordia University.