CDIC Reminds Consumers That Private Digital Currencies Are Not Protected

OTTAWA, ONTARIO--(Marketwired - Feb. 19, 2014) - While the use of private digital currencies such as Bitcoin is becoming more common, Canada Deposit Insurance Corporation (CDIC) reminded consumers today that it only covers deposits in Canadian dollars at member institutions.

"We recognize that Canadians are using new technologies to make payments, but they should be aware that CDIC deposit insurance coverage is limited," said CDIC President and CEO Michèle Bourque. "When it comes to your deposits, it's important to get the whole picture."

Ms. Bourque also noted that CDIC covers eligible deposits up to $100,000 in the event of a member institution failure, but it does not cover losses due to fraud. For details on eligible deposits and a list of member institutions, visit cdic.ca.

Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that contributes to the stability of the Canadian financial system by providing deposit insurance against the loss of eligible deposits at member institutions in the event of failure. Eligible deposits are automatically covered to a limit of $100,000 per insured category at each member institution. CDIC members include banks, federally regulated credit unions as well as loan and trust companies and associations governed by the Cooperative Credit Associations Act that take deposits. CDIC is funded by premiums paid by member institutions and does not receive public funds to operate.