According to Cryptoslate, the Bank of Canada released an internal research and discussion document on March 21, analyzing the correlation and potential risks of flash loans and their policies. The research report defines Lightning Loan as a blockchain native financial tool that allows users to borrow encrypted assets without collateral, provided that the loan is repaid within a single atomic transaction. It is worth noting that such internal discussion documents represent the complete research results of the central bank on important issues and fall within the broad scope of the Bank of Canada's responsibility to assess the impact of emerging technologies on financial stability and market structure. Report author Jack Mandin pointed out that although Lightning Loan is currently limited to blockchain networks, its underlying concepts can be extended to tokenized financial infrastructure if they meet technical conditions. This type of concept includes atomized risk-free lending, which may give rise to new systems that support atomic trading and programmable assets. The study also identified potential risks to financial stability. If financial institutions start integrating smart contract lending, it may directly trigger risks. In addition, when blockchain assets (including assets involved in flash lending activities) are embedded in traditional financial products (such as exchange traded funds), systemic risks may arise.
