Every financial instrument exists to serve a basic purpose quite distinct from its use as an investment asset. What is the basic role played by cryptocurrencies? Since it claims to be a currency, does it perform the functions of a currency? The answer is that the volatility of many cryptocurrencies precludes them as an efficient medium of exchange.
Similarly, pension funds should clear interest rate swaps through a bank that is a clearing member of SwapClear in London.18 Both of these CCPs come under the surveillance of the Bank of Canada.