Canada's Cryptocurrency Industry Awaiting Mirror After the Polls: Will It Rebound?
Cryptocurrencies Pitting Canada's Parties: A Battlefield of Values
Talk about a contentious topic stirring up political clashes! In 2022, the Liberal and Conservative parties of Canada found themselves on opposite ends of the cryptocurrency debate. Conservatives, led by then-Party Leader Pierre Poilievre, championed crypto as a way to outfox rampant inflation, blaming Liberal economic policies for pushing inflation rates to 30-year highs and causing a dramatic surge in housing expenses.
On the contrary, the Liberals eyed cryptocurrencies with suspicion, branding them as too volatile for financial stability.
More often than not, the government considers cryptocurrencies securities, making it a hassle for entrepreneurs and developers in Canada’s crypto sector. Conservatives view this cautious approach as a mismatch for the country’s economic and technological growth.
Finance Minister Chrystia Freeland took a swipe at Poilievre's pro-crypto stance after the 2021 bull run had come crashing down into a bear market. She accused Conservatives of peddling bad advice to Canadians, citing crypto's plunge by 21% over the past week and a whopping 65% since Poilievre's first reckless recommendation. Freeland demanded the Conservatives apologize for giving batshit advice that left many investors high and dry.
Poilievre insisted on allowing the Canadian masses to use cryptocurrencies alongside good ol' greenbacks, confident that crypto would hold value during times of high inflation. His ambition revolves around changing the legal status of cryptocurrencies from securities to commodities.
He's set on making Canada the undisputed capital of the blockchain world since 2022, beating U.S. President Donald Trump by two years to the dumb Trump promise. That very year, Calgary Nose Hill MP Michelle Rempel Garner presented the Canadian cryptocurrency initiative.
Garner's proposal
During 2022, Garner dropped Bill C-249, the aim of which was to boost dialogue between the Minister of Finance and the crypto community to establish a regulatory framework for digital assets. The bill aimed to facilitate entry into the crypto sector and cultivate a congenial legal environment for innovators.
While campaigning for the bill, Garner decried Canada's loss of talented individuals due to a lack of government support and restrictive crypto laws.
A wake-up call: Canada's economic dominance at risk without crypto evolution, Coinbase warns Even though the bill garnered a warm welcome from Canadian crypto enthusiasts and the Conservative Party, it was thwarted in its second reading in the House of Commons.
Trump's grand entrance
Trump's musings on annexing Canada to become the United States' 51st state gave the Liberal Party a leg up with older voters. Prime Minister Carney appeared the most able negotiator to guard Canada's interests vis-à-vis the U.S. Meanwhile, the Conservatives were more preoccupied with domestic issues like galloping inflation and insane housing costs.
In the end, the political landscape of Canada took an unexpected twist. Young voters rallied behind the Conservatives, while older generations with the Trump conundrum at the top of their priority list formed a sizeable voting bloc that handed Carney a win.
Other factors played a role in Carney's victory, including the Green Party expelling candidates to prevent a divisive vote with the Liberals. Quebec had the lowest Conservative support heading into the election.
In his triumphant speech on April 29, Carney declared, “We've moved over the shock of the American betrayal, but we should never forget the lessons.” Trump, unfazed by the Liberal victory, commented that he and Carney were about to embark on a terrific relationship.
In the U.S., USD-pegged stablecoins have been contributing to the greenback's grip on the global markets, thanks to their backing by U.S. Treasury bonds. The issuer of USDC, Circle, let go of Treasury bonds from its reserves in 2023.
Given that Conservatives were advocating for stablecoins as a defense against rampant inflation, the Liberal Party's stance could be interpreted as an effort towards independence from the U.S. Moreover, their favorable stance towards central bank digital currencies aligns more closely with the European model. On the other hand, the Trump Administration in the U.S. put the brakes on CBDC research due to privacy concerns.
The future of the crypto scene under Carney
Overall, the Liberal Party displays a frosty attitude toward cryptocurrencies, with high-profile members like Trudeau and Carney habitually making skeptical and even aggressive comments about them.
Carney attributed Bitcoin's limited network capacity and volatile nature as reasons for it being unsuitable for widespread use as a payment method. He trusts traditional financial institutions, asserting that central bank digital currencies offer greater regulatory control.
There's no ballpark date on when the Liberal Party might shift its stance on cryptocurrencies anytime soon. Thus, advocates for digital assets may face an uphill battle in Canada over the next four years.
What's Carney's official take on cryptocurrencies for the 2025 Canadians?
As for any fresh insights into Carney's views on cryptocurrencies as of May 2025, our researchers turned up zilch. The search results were primarily focused on Carney’s foreign policy, public remarks, and interactions with U.S. President Donald Trump, but there were no direct mentions or statements regarding his stance on cryptocurrencies.
- The Liberal Party, led by Prime Minister Carney, maintains a skeptical view toward cryptocurrencies, with concerns about their volatility and limited network capacity.
- Despite the Conservatives' push for stablecoins as a means to combat inflation, the Liberal Party seems to favor central bank digital currencies, aligning more closely with the European model.
- In 2022, Michelle Rempel Garner presented Bill C-249, aiming to facilitate entry into the crypto sector and establish a regulatory framework for digital assets, but the bill was thwarted in the House of Commons.
- Pierre Poilievre, Conservative Party leader in 2022, advocated for changing the legal status of cryptocurrencies from securities to commodities, allowing Canadians to use them alongside traditional currency.
- News outlets like Coinbase have warned that Canada's economic dominance may be at risk without the evolution of cryptocurrencies.
- Cryptocurrencies, such as Bitcoin (BTC), XRP, and other tokens, are becoming increasingly relevant in discussions surrounding politics, finance, technology, and general news, pitting Canada's parties on opposite ends, especially in the context of inflation, regulation, and Innovation.
