The federal government of Canada has announced that it plans to examine central bank digital currencies, stablecoins and cryptocurrencies. This revelation was in the recently released mini-budget statement.
Deputy PM Chrystia Freeland released the 2022 Fall Economic Statement, which serves as an update on fiscal policy during a given budget year. That statement contained a section focused on laying out what plans the federal government has for the crypto industry. The government revealed in the statement that it needed to keep pace with the different ways in which the digitalization of money as well as cryptos were transforming Canada’s financial system as well as systems globally.
The government expressed concerns about the ability of cryptos and digital currencies to pose threats to democracy globally. The examples given in the statement for this assertion included the use of cryptos to work-around sanctions as well as being used to fund illegal activities within and outside Canada.
The government statement then indicated that consultations would commence with different stakeholders on CBDCs, cryptos and stablecoins. It wasn’t immediately clear what exactly the government wanted to consult about or with whom. However, it is broadly believed that those consultations are in line with the federal government’s initiation of a review process aimed at updating the financial sector laws and regulations, particularly in connection to recent realities of digitalizing money.
The consultations will most likely also explore the possible need of a central bank digital currency (CBDC) to combat the threats posed by cryptos and other digital forms of assets.
There is some context to the Canadian government’s concerns about cryptos and other such assets. Back in January, massive protests broke out in Ottawa against COVID-19 restrictions as well as the mandate to vaccinate everyone of age. The protestors were stopped from using platforms that facilitate the collection of fiat currency donations. This was in a bid to starve the protests of the funding needed to keep the protests going, but organizers switched to crypto platforms and collected nearly a $1 million crypto donations before the police wrote letters asking crypto exchanges to deactivate the accounts on which those donations were being channeled.
Given this background, it is likely that players in the global blockchain ecosystem such as Riot Blockchain Inc. (NASDAQ: RIOT) will be following events in Canada closely to see whether the country’s plans to regulate the industry take a draconian approach or more progressive stance on digital assets such as cryptos.
About CryptoCurrencyWire
CryptoCurrencyWire (“CCW”) is a financial news and content distribution company that provides (1) access to a network of wire services via InvestorWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets, (3) enhanced press release services to ensure maximum impact, (4) social media distribution via IBN (InvestorBrandNetwork) to nearly 2 million followers, and (5) a full array of corporate communications solutions As a multifaceted organization with an extensive team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled visibility, recognition and brand awareness. CCW is where news, content and information about crypto converge.
To receive instant SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.cryptocurrencywire.com
Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://CCW.fm/Disclaimer
CryptoCurrencyWire (CCW)
New York, New York
www.cryptocurrencywire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com
CryptoCurrencyWire is part of the InvestorBrandNetwork.
The U.S. Securities and Exchange Commission (SEC) recently launched an initiative called “Project Crypto,” aimed…
Argentina is stepping up its efforts to stop the use of crypto in the financing…
PayPal has rolled out a new feature that lets users pay with crypto directly through…
As digital currencies become more connected with mainstream finance, major players in the industry are…
While Bitcoin remains the top pick for most corporate treasuries, a growing number of companies…
Crypto-related stocks experienced a surge on Monday as Ether reached its highest price of the…