The First World War led to higher tariffs as governments scrambled to raise revenue. Income tax was introduced in 1917, which finally gave governments another important source of revenue and made tariffs what they are today—purely a tool of protectionism. Foreign investment into Canada slowed sharply, immigration came almost to a halt and a major recession followed the First World War.
In accordance with its mandate the ECB, together with Eurosystem central banks, is preparing to apply its oversight framework for payment systems to innovative projects, including stablecoin arrangements. As the payments landscape continues to evolve, we will work with other international authorities to ensure that the Eurosystem requirements remain relevant by closing any gaps that innovative solutions might create.